• | The Board of Trustees of the Fund, including the Independent Trustees, unanimously recommends that you vote in favor of the proposal because it believes that the Reorganization is in the best interests of the Fund and that the interests of existing shareholders will not be diluted as a result of the Reorganization. NYMIF's shareholders will receive shares of a fund with greater assets and a stronger overall long term performance record than NYMIF. |
• | After the Reorganization, shareholders of the Fund will be invested in a nationally diversified municipal bond portfolio with greater assets and a stronger overall long term performance record. Although net expenses of FMBDF on a per class basis will be slightly higher than those of NYMIF, total gross expenses of FMBDF on a per class basis will be lower than those of NYMIF. Please note that before waived fees and reimbursed expenses, FMBDF's total annual gross expenses are lower than those of NYMIF and, while prior to January 1, 2019, any applicable fee limits can only be increased (and related waivers and reimbursed expenses reduced) with Board approval, there are no assurances that fee waivers and reimbursed expenses for FMBDF will extend beyond January 1, 2019. |
• | The total net asset value of your investment will not change as a result of the Reorganization and you will not have to pay any sales charge in connection with the exchange of your shares. You will receive shares of Federated Municipal Bond Fund, Inc. (“Shares”) with a total dollar value equal to the total dollar value of the Federated New York Municipal Income Fund shares (“Shares”) that you own at the time of the Reorganization. |
If you own Shares in: | You will receive Shares of: |
Federated New York Municipal Income Fund | Federated Municipal Bond Fund, Inc. |
Class A Shares | Class A Shares |
Class B Shares | Class B Shares |
• | The Reorganization is expected to be a tax-free reorganization under the Internal Revenue Code of 1986, as amended. |
• | The Fund will distribute to its shareholders any undistributed income and realized capital gains accumulated prior to the Reorganization. With respect to capital gains, they will be distributed to shareholders prior to the Reorganization and will be taxable. Distributions of any previously undistributed income will either be reinvested in a shareholder's account in FMBDF or distributed to Fund shareholders following the Reorganization and will generally be tax-exempt for Fund shareholders. As of August 31, 2017, the estimated per share dollar amount of any capital gains or any previously undistributed income is $0 and $0, respectively. |
• | Unlike NYMIF, FMBDF will invest its assets so that a majority of the income distributed by FMBDF will not be exempt from the personal income taxes imposed by the state of New York and New York municipalities. |
• | The investment objectives, certain investment strategies and certain fundamental and non-fundamental investment limitations of FMBDF are materially different than those of NYMIF. |
• | Online–Use the web address on the proxy card; |
• | Telephone–Use the toll-free telephone number on the proxy card; |
• | Mail–Complete and return the proxy card in the enclosed postage paid envelope; or |
• | In Person at the November 27, 2017, meeting. |
1. | Sign and return the proxy card without indicating a preference, your vote will be cast “for” the proposal. |
2. | Do not respond at all, we may contact you by telephone to request that you cast your vote. |
(1) | To approve or disapprove a proposed Agreement and Plan of Reorganization pursuant to which Federated Municipal Bond Fund, Inc. (FMBDF) would acquire all, or substantially all, of the assets of NYMIF in exchange for Class A Shares and Class B Shares of FMBDF to be distributed pro rata by NYMIF to its shareholders of Class A Shares and Class B Shares, respectively, in a complete liquidation and dissolution of NYMIF |
and to transact such other business as may properly come before the special meeting or any adjournment thereof. |
Investment Objectives | |
NYMIF (Reorganizing Fund) | FMBDF (Surviving Fund) |
To provide current income exempt from federal regular income tax (federal regular income tax does not include the federal alternative minimum tax (AMT)) and the personal income taxes imposed by the state of New York and New York municipalities. | To provide for its shareholders a high level of current income which is exempt from federal regular income tax.1 |
1 | Federal regular income tax does not include the federal alternative minimum tax. |
Reorganizing Fund | Share Classes | Total Net Assets (as of 7/31/2017) |
Federated New York Municipal Income Fund | Class A | $26,252,934 |
Class B | $1,601,506 | |
Total Fund Assets | $27,854,440 |
Surviving Fund | Share Classes | Total Net Assets (as of 7/31/2017) |
Federated Municipal Bond Fund | Class A | $300,376,574 |
Class B | $3,865,585 | |
Class C | $16,225,186 | |
Class F | $27,568,710 | |
Institutional Shares* | $100 | |
Total Fund Assets | $348,036,155 |
* | FMBDF's Institutional Shares commenced operations on July 27, 2017. |
• | NYMIF will pay direct proxy expenses, including mailing, processing, tabulation, printing and solicitation costs and expenses, as well as the cost associated with printing and mailing of prospectus supplements, as applicable, associated with the Reorganization estimated at $18,381; |
• | The effect on the net asset value of NYMIF as a result of the payment of the direct proxy, supplement and brokerage expenses would be approximately $0.0069 per share; |
• | The Adviser will pay the other direct and indirect expenses of the Reorganization on behalf of NYMIF (consisting primarily of legal and accounting fees) except that NYMIF will pay the estimated direct proxy expenses described above; |
• | NYMIF is expected to incur minimal brokerage expenses related to the sale of any assets prior to the proposed Reorganization or the purchase of replacement securities; |
• | There will be no dilution to shareholders as a result of the Reorganization, because each NYMIF shareholder will become the owner of shares of FMBDF having a total net asset value equal to the total net asset value of his or her holdings in NYMIF on the date of the Reorganization; and |
• | NYMIF shareholders will lose the benefit of tax favored status of dividends under New York State and municipal income taxes. |
INVESTMENT OBJECTIVES AND POLICIES | |
NYMIF (Reorganizing Fund) | FMBDF (Surviving Fund) |
The Fund's investment objective is to provide current income exempt from federal regular income tax (federal regular income tax
does not include the federal alternative minimum tax (AMT)) and the personal income taxes imposed by the state of New York and New York municipalities. The Fund invests in a portfolio of tax-exempt securities so that, normally (except as discussed herein), distributions of annual interest income are exempt from federal regular income tax and the personal income taxes imposed by the state of New York and New York municipalities. Interest income from the Fund's investments may be subject to the AMT. The Fund does not limit itself to securities of a particular maturity range. Currently, at least a majority of the Fund's assets will be invested in long-term securities (i.e., securities with stated maturities of 10 years or more). The Fund also will invest at least a majority of its assets in securities rated investment-grade (or unrated securities of comparable quality) without regard to the maturity of the securities, and may purchase securities rated below investment-grade (or unrated securities of comparable quality), which are also known as junk bonds, up to 49% of its assets. Investment-grade securities are securities that receive investment-grade ratings (i.e., generally ratings in the first, second, third or fourth highest rating category) by a nationally recognized statistical rating organization (NRSRO) or unrated securities of comparable quality. For example, securities rated AAA, AA, A or BBB by Standard & Poor's, an NRSRO, would be rated in the first, second, third or fourth highest ratings category, respectively. Securities rated below investment-grade (or noninvestment-grade securities) are securities that do not receive investment-grade ratings (i.e., generally ratings below one of the four highest rating categories) by an NRSRO or unrated securities of comparable quality. For example, securities rated B or BB by Standard & Poor's, an NRSRO, would be noninvestment-grade securities. The amount of the Fund's assets invested in long-term or investment-grade, tax-exempt securities will be determined at the time when tax-exempt securities are purchased. For example, a later increase or decrease in percentage resulting from any change in value or net assets, or from a downgrade in a security's rating/quality, will not require the Fund to sell any tax-exempt security held in the Fund's portfolio. The investment-grade, tax-exempt securities in which the Fund invests generally are subject to tax-exempt securities risk, interest rate, issuer credit, counterparty credit, liquidity, tax, leverage, call, sector, prepayment, credit enhancement, non-diversification risk, and risk related to the economy, and the derivative contracts and hybrid instruments in which the Fund invests generally are subject to these risks, as well as the risks of investing in derivative contracts and hybrid instruments, all as described in this Prospectus. The noninvestment-grade tax-exempt securities in which the Fund invests, which are also known as junk bonds, also generally are subject to tax-exempt securities risk, interest rate, issuer credit, counterparty credit, liquidity, tax, leverage, call, sector, prepayment, credit enhancement, non-diversification risk, risks associated with noninvestment-grade securities and risk related to the economy. | The Fund's investment objective is to provide for its shareholders a high level of current income which is exempt from federal regular income
tax. The Fund pursues its objective by investing its assets so that normally distributions of annual interest income are exempt from federal regular income tax. The Fund's investment adviser (“Adviser”) may also invest the Fund's assets in securities whose interest (while exempt from the federal regular income tax) may be subject to (or may be a specific preference item for purposes of) the federal alternative minimum income tax for individuals and corporations (AMT). The Fund does not limit itself to securities of a particular maturity range. The Fund also will invest at least a majority of its assets in securities rated investment grade (or unrated securities of comparable quality) without regard to the maturity of the securities, and may purchase securities rated below investment grade (or unrated securities of comparable quality), which are also known as junk bonds, up to 49% of its assets. The amount of the Fund's assets invested in investment-grade, tax-exempt securities will be determined at the time when tax-exempt securities are purchased. For example, a later increase or decrease in percentage resulting from any change in value or net assets, or from a downgrade in a security's rating/quality, will not require the Fund to sell any tax-exempt security held in the Fund's portfolio. Investment-grade securities are securities that receive investment-grade ratings (i.e., generally ratings in the first, second, third or fourth highest rating category, including modifiers, sub-categories or gradations) by a nationally recognized statistical rating organization (NRSRO) or unrated securities of comparable quality. For example, securities rated AAA, AA, A or BBB (including modifiers, sub-categories or gradations) by Standard & Poor's, an NRSRO, would be rated in the first, second, third or fourth ratings category, respectively. Securities rated below investment grade (or noninvestment-grade securities) are securities that do not receive investment-grade ratings (i.e., generally ratings below one of the four highest rating categories) by an NRSRO or unrated securities of comparable quality. For example, securities rated B or BB (including modifiers, sub-categories or gradations) by Standard & Poor's, an NRSRO, would be noninvestment-grade securities. The presence of a ratings modifier, sub-category, or gradation (for example, a (+) or (-)) is intended to show relative standing within the major rating categories and does not affect the security credit rating for purposes of the Fund's investment parameters. The Fund does not have a specific minimum quality rating. |
INVESTMENT OBJECTIVES AND POLICIES (continued) | |
NYMIF (Reorganizing Fund) | FMBDF (Surviving Fund) |
The Fund's investment adviser (“Adviser”) actively manages the Fund's portfolio, seeking to manage the interest
rate risk and credit risk assumed by the Fund and to provide enhanced levels of after-tax total return. The Adviser manages the Fund's interest rate risk by adjusting the duration of its portfolio. The Adviser may lengthen or shorten duration from time to time based on its interest rate outlook, but the Fund has no set duration parameters. Duration” measures the sensitivity of a security's price to changes in interest rates. The greater a portfolio's duration, the greater the potential change in the portfolio's value in response to a change in market interest rates. The Adviser will increase or reduce the Fund's portfolio duration based on its interest rate outlook. When the Adviser expects interest rates to fall, it will maintain a longer portfolio duration. When the Adviser expects interest rates to increase, it will shorten the portfolio duration. The Adviser uses hedging transactions for purposes of duration management. The Adviser considers a variety of factors in formulating its interest rate outlook, including (among others) the following:■ 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 Adviser manages credit risk by performing a fundamental credit analysis on tax-exempt securities before the Fund purchases such securities. The Adviser considers various factors, including (among others) the following:■ 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. The Adviser monitors the credit risks of all portfolio securities on an ongoing basis by reviewing, as the Adviser considers necessary or appropriate in accordance with its procedures, periodic financial data and ratings of NRSROs. The Fund's investments in noninvestment-grade securities will be more dependent on the Adviser's credit analysis than would be investment-grade securities, because noninvestment-grade securities, while generally offering higher yields, also involve greater risks. Consequently, in addition to the review process described above, the Adviser may, for example and when appropriate, visit the site that the issuer is developing with the proceeds of the offering and may engage in detailed discussions with the issuer regarding the offering. The Adviser attempts to provide enhanced levels of after-tax total return. Total return consists of two components: (1) income received from the Fund's portfolio securities; and (2) changes in the market value of the Fund's portfolio securities and attendant increase or decrease in the net asset value (NAV) of Fund Shares. The Adviser seeks total return on an after-tax basis, so that it will try to maximize tax-exempt income distributions; make limited ordinary income distributions; and minimize or eliminate capital gains distributions. | The types of securities in which the Fund may principally invest include tax-exempt securities, such as the following types: general
obligation bonds, special revenue bonds, private activity bonds, tax increment financing bonds, municipal leases, zero-coupon securities, inverse floaters, municipal mortgage-backed securities, planned amortization
classes, variable rate demand instruments, municipal notes and municipal auction rate securities. The investment-grade, tax-exempt securities in which the Fund invests generally are subject to interest rate, issuer
credit, counterparty credit, tax-exempt securities, liquidity, tax, leverage, call, sector, prepayment, credit enhancement and economic risks, and the derivatives contracts and hybrid instruments in which the
Fund invests are subject to these risks, as well as the risks of investment in derivatives contracts and hybrid instruments, all as described in this Prospectus. The noninvestment-grade securities in which the Fund
invests also are subject to interest rate, issuer credit, counterparty credit, tax-exempt securities, liquidity, tax, leverage, call, sector, prepayment, credit enhancement and economic risks, as well as the risks of
investing in noninvestment-grade securities. The Adviser of the Fund actively manages the Fund's portfolio, seeking to manage the interest rate risk and credit risk assumed by the Fund and provide enhanced levels of after-tax total return. The Adviser manages the Fund's interest rate risk by adjusting the duration of its portfolio. The Adviser may lengthen or shorten duration from time to time based on its interest rate outlook, but the Fund has no set duration parameters. “Duration” measures the price sensitivity of a fixed-income security to changes in interest rates. The greater a portfolio's duration, the greater the potential change in the portfolio's value in response to a change in market interest rates. The Adviser will increase or reduce the Fund's portfolio duration based on its interest rate outlook. When the Adviser expects interest rates to fall, it will maintain a longer portfolio duration. When the Adviser expects interest rates to increase, it will shorten the portfolio duration. The Adviser uses hedging transactions for purposes of duration management. The Adviser considers a variety of factors in formulating its interest rate outlook, including (among others) the following:■ 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 Adviser manages credit risk by performing a fundamental credit analysis on tax-exempt securities before the Fund purchases such securities. The Adviser considers various factors, including (among others) the following:■ 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. |
INVESTMENT OBJECTIVES AND POLICIES (continued) | |
NYMIF (Reorganizing Fund) | FMBDF (Surviving Fund) |
In seeking to increase incremental after-tax total returns, the Fund may invest in tax-exempt securities that are trading at a
price less than the original issue price (or 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) and, as a result, may result in taxable distributions to
shareholders. The Fund may use derivative contracts and/or hybrid instruments to implement elements of its investment strategy. For example, the Fund may use derivative contracts or hybrid instruments to increase or decrease the portfolio's exposure to the investment(s) underlying the derivative or hybrid instrument in an attempt to benefit from changes in the value of the underlying investment(s) or to gain exposure to the municipal bond sector. Additionally, by way of example, the Fund may use derivative contracts in an attempt to:■ 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. Because the Fund refers to New York municipal investments in its name, it has an investment policy that it will normally invest its assets so that at least 80% of the income that it distributes will be exempt from federal regular income tax and the personal income taxes imposed by the state of New York and New York municipalities. This policy may not be changed without shareholder approval. | The Adviser monitors the credit risks of all securities on an ongoing basis by reviewing, as the Adviser considers necessary or appropriate in
accordance with its procedures, periodic financial data and ratings of NRSROs. The Fund's investments in noninvestment-grade securities will be more dependent on the Adviser's credit analysis than would be
investment-grade securities, because noninvestment-grade securities, while generally offering higher yields, also involve greater risks. Consequently, in addition to the review process described above, the Adviser
may, for example and when appropriate, visit the site that the issuer is developing with the proceeds of the offering and generally will engage in detailed discussions with the issuer regarding the offering. The Adviser attempts to provide enhanced levels of after-tax total return. Total return consists of two components: (1) income received from the Fund's portfolio securities; and (2) changes in the market value of the Fund's portfolio securities and attendant increase or decrease in the net asset value (NAV) of Fund Shares. The Adviser seeks total return on an after-tax basis, so that it will try to maximize tax-exempt income distributions; make limited ordinary income distributions; and minimize or eliminate capital gains distributions. In seeking to increase incremental after-tax total returns, the Fund may invest in tax-exempt securities that are trading at a price less than the original issue price (or 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) and, as a result, may result in taxable distributions to shareholders. The Adviser's ability to formulate an accurate interest rate outlook, coupled with effective management of the Fund's duration as described above, is critical to the Adviser's achievement of this component of its strategy. The Adviser will seek to further enhance after-tax total return by engaging in a relative value analysis; that is, the Adviser will assess the cost of a tax-exempt security compared with other tax-exempt securities and taxable securities such as U.S. Treasury obligations. The Adviser may also allocate investments in sectors of the tax-exempt market that offer the highest return. |
INVESTMENT OBJECTIVES AND POLICIES (continued) | |
NYMIF (Reorganizing Fund) | FMBDF (Surviving Fund) |
TEMPORARY INVESTMENTS The Fund may temporarily depart from its principal investment strategies by investing its assets in taxable securities or holding cash. It may do this in response to unusual circumstances, such as: adverse market, economic or other conditions (for example, to help avoid potential losses, or during periods when there is a shortage of appropriate securities); to maintain liquidity to meet shareholder redemptions; or to accommodate cash inflows. It is possible that such investments could affect the Fund's investment returns and/or the ability to achieve the Fund's investment objectives. | The Fund may use derivative contracts and/or hybrid instruments to implement elements of its investment strategy. For example, the Fund
may use derivative contracts or hybrid instruments to increase or decrease the portfolio's exposure to the investment(s) underlying the derivative or hybrid instrument in an attempt to benefit from changes in
the value of the underlying investment(s) or to gain exposure to the municipal bond sector. Additionally, by way of example, the Fund may use derivative contracts in an attempt to:■ 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. TEMPORARY INVESTMENTS The Fund may temporarily depart from its principal investment strategies by investing its assets in taxable securities or holding cash. It may do this in response to unusual circumstances, such as: adverse market, economic or other conditions (for example, to help avoid potential losses, or during periods when there is a shortage of appropriate securities); to maintain liquidity to meet shareholder redemptions; or to accommodate cash inflows. It is possible that such investments could affect the Fund's investment returns and/or the ability to achieve the Fund's investment objectives. |
Principal Investment Risks | Applies to NYMIF | Applies to FMBDF |
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. | X | X |
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. | X | X |
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. | X | X |
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. | X | X |
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. | X | X |
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. | X | X |
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. | X | X |
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. | X | X |
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. | X | X |
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. | X | X |
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. | X | X |
Principal Investment Risks (continued) | Applies to NYMIF | Applies to FMBDF |
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, or industry or economic trends and developments, may, from time to time, and for varying periods of 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. | X | X |
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 such as interest rate, credit, liquidity and leverage risk. | X | X |
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. | X | X |
Sector Risk. Since the Fund invests at least a majority of its assets in a portfolio of: (1) long-term New York tax-exempt securities; and (2) investment-grade New York tax-exempt securities, the Fund may be subject to additional risks compared to funds that invest in multiple states. New York's economy is relatively diversified across the manufacturing, agriculture and service sectors. New York City, however, is a major component of the state's economy and is heavily dependent on the historically volatile financial, real estate and insurance industries. A substantial part of the Fund's portfolio also 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. | X | |
Non-Diversification Risk. The Fund is non-diversified. Compared to diversified mutual funds, it may invest a higher percentage of its assets among fewer issuers of portfolio securities. This increases the Fund's risk by magnifying the impact (positively or negatively) that any one issuer has on the Fund's Share price and performance. | X | |
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. | X |
NYMIF (Reorganizing Fund) | FMBDF (Surviving Fund) |
Names Rule Policy Under normal circumstance the Fund will invest its assets so that at least 80% of the income that it distributes will be exempt from federal regular income tax and the personal income taxes imposed by the state of New York and New York municipalities. | Names Rule Policy The Fund will invest its assets so that at least 80% of the income that it distributes will be exempt from federal regular income tax. |
Diversification No corresponding fundamental policy for NYMIF. | Diversification. With respect to securities comprising 75% of the value of its total assets, the Fund will not purchase securities of any one issuer (other than cash, cash items, securities issued or guaranteed by the government of the United States or its agencies or instrumentalities and repurchase agreements collateralized by such U.S. government securities, and securities of other investment companies) if, as a result, more than 5% of the value of its total assets would be invested in the securities of that issuer, or the Fund would own more than 10% of the outstanding voting securities of that issuer. |
Concentration The Fund will not make investments that will result in the concentration of its investments in the securities of issuers primarily engaged in the same industry. Government securities, municipal securities and bank instruments will not be deemed to constitute an industry. | Concentration The Fund will not make investments that will result in the concentration of its investments in the securities of issuers primarily engaged in the same industry, provided that the Fund may invest more that 25% of the value of its assets in industrial development bonds. Government securities, municipal securities and bank instruments will not be deemed to constitute an industry. As to industrial development bonds, the Fund may purchase securities of an issuer resulting in the ownership of more than 25% of the Fund's assets in one industry, and the Fund reserves the right to invest more than 25% of its assets in industrial development bonds in the same state. |
Underwriting The Fund may not underwrite the securities of other issuers, except that the Fund may engage in transactions involving the acquisition, disposition or resale of its portfolio securities, under circumstances where it may be considered to be an underwriter under the Securities Act of 1933. | Underwriting Same |
Investing in Commodities The Fund may not purchase or sell physical commodities, provided that the Fund may purchase securities of companies that deal in commodities. | Investing in Commodities The Fund may not purchase or sell physical commodities, provided that the Fund may purchase securities of companies that deal in commodities. For purposes of this restriction, investments in transactions involving futures contracts and options, forward currency contracts, swap transactions and other financial contracts that settle by payment of cash are not deemed to be investments in commodities. |
Investing in Real Estate The Fund may not purchase or sell real estate, provided that this restriction does not prevent the Fund from investing in issuers which invest, deal or otherwise engage in transactions in real estate or interests therein, or investing in securities that are secured by real estate or interests therein. The Fund may exercise its rights under agreements relating to such securities, including the right to enforce security interests and to hold real estate acquired by reason of such enforcement until that real estate can be liquidated in an orderly manner. | Investing in Real Estate The Fund may not purchase or sell real estate, provided that this restriction does not prevent the Fund from investing in issuers which invest, deal, or otherwise engage in transactions in real estate or interests therein, or investing in securities that are secured by real estate or interests therein. |
Issuing Senior Securities and Borrowing Money The Fund may borrow money, directly or indirectly, and issue senior securities to the maximum extent permitted under the Investment Company Act of 1940, as amended (the “1940 Act”). | Issuing Senior Securities and Borrowing Money Same |
Lending The Fund may not make loans, provided that this restriction does not prevent the Fund from purchasing debt obligations, entering into repurchase agreements, lending its assets to broker/dealers or institutional investors and investing in loans, including assignments and participation interests. | Lending Same |
NYMIF (Reorganizing Fund) | FMBDF (Surviving Fund) |
Illiquid Securities. The Fund will not purchase securities for which there is no readily available market, or enter into repurchase agreements or purchase time deposits that the Fund cannot dispose of within seven days, if immediately after and as a result, the value of such securities would exceed, in the aggregate, 15% of the Fund's net assets | Illiquid Securities. See “Restricted Securities” below. |
Restricted Securities The Fund may invest in securities subject to restrictions on resale under the federal securities laws. | Restricted Securities The Fund may invest in restricted securities. Restricted securities are any securities in which the Fund may invest pursuant to its investment objective and policies but which are subject to restrictions on resale under federal securities law. Under criteria established by the board, certain restricted securities are determined to be liquid. To the extent that restricted securities are not determined to be liquid, the Fund will limit their purchase, together with other illiquid securities, to 15% of its net assets. |
Buying on Margin The Fund will not purchase securities on margin, provided that the Fund may obtain short-term credits necessary for the clearance of purchases and sales of securities and further provided that the Fund may make margin deposits in connection with its use of financial options and futures, forward and spot currency contracts, swap transactions and other financial contracts or derivative instruments. | Buying on Margin Same |
Pledging Assets The Fund will not mortgage, pledge, or hypothecate any of its assets, provided that this shall not apply to the transfer of securities in connection with any permissible borrowing or to collateral arrangements in connection with permissible activities | Pledging Assets Same |
Additional Information. Except with respect to borrowing money, if a percentage limitation is adhered to at the time of investment, a later increase or decrease in percentage resulting from any change in value or net assets will not result in a violation of such limitation. In applying the Fund's commodities restriction, investments in transactions involving futures contracts and options, forward currency contracts, swap transactions and other financial contracts that settle by payment of cash are not deemed to be investments in commodities. In applying the Fund's concentration limitation: (a) utility companies will be divided according to their services, for example, gas, gas transmission, electric and telephone will each be considered a separate industry; (b) financial service companies will be classified according to end users of their services, for example, automobile finance, bank finance and diversified finance will each be considered a separate industry; and (c) asset-backed securities will be classified according to the underlying assets securing such securities. To conform to the current view of the SEC staff that only domestic bank instruments may be excluded from industry concentration limitations, the Fund will not exclude foreign bank instruments from industry concentration tests as long as the policy of the SEC remains in effect. The Fund will consider concentration to be the investment of more than 25% of the value of its total assets in any one industry. | Additional Information. To conform to the current view of the SEC staff that only domestic bank instruments may be excluded from industry concentration limitations, as a matter of non-fundamental policy, the Fund will not exclude foreign bank instruments from industry concentration tests as long as the policy of the SEC remains in effect.The Fund applies its concentration of investments restrictions as follows:■ 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 For purposes of the above limitations, the Fund considers certificates of deposit and demand and time deposits issued by a U.S. branch of a domestic bank or savings association having capital, surplus and undivided profits in excess of $100,000,000 at the time of investment to be “cash items” and “bank instruments.” As a matter of non-fundamental operating policy, the Fund will not exclude domestic bank instruments or foreign bank instruments from industry concentration limitations so long as it is the SEC staff's view that such instruments should not be excluded from industry concentration tests. Except with respect to borrowing money, if a percentage limitation is adhered to at the time of investment, a later increase or decrease in percentage resulting from any change in value or net assets will not result in a violation of such limitation. |
Shareholder Fees | Reorganizing Fund (NYMIF) - A | Surviving Fund (FMBDF) - A | FMBDF - A Pro Forma Combined |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 4.50% | 4.50% | 4.50% |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | 0.00% | 0.00% | 0.00% |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | None | None | None |
Redemption Fee (as a percentage of amount redeemed, if applicable) | None | None | None |
Exchange Fee | None | None | None |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | |||
Management Fee | 0.40% | 0.47% | 0.47% |
Distribution (12b-1) Fee | 0.00%1 | None | None |
Other Expenses | 0.95% | 0.47% | 0.48% |
Total Annual Fund Operating Expenses | 1.35% | 0.94% | 0.95% |
Fee Waivers and/or Expense Reimbursements | (0.59)%2 | (0.10)%3 | (0.11)%3 |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 0.76% | 0.84% | 0.84% |
1 | NYMIF has adopted a Distribution (12b-1) Plan for its A class pursuant to which the A class of NYMIF may incur or charge a Distribution (12b-1) fee of up to a maximum amount of 0.05%. No such fee is currently being charged by the A class of NYMIF. The A class of NYMIF will not incur or charge such a Distribution (12b-1) fee until such time as approved by the Board. |
2 | For NYMIF, 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, extraordinary expenses, interest expense, line of credit expenses and proxy-related expenses, paid by NYMIF, if any) paid by NYMIF's A class (after the voluntary waivers and/or reimbursements) will not exceed 0.76% (the “Fee Limit) up to but not including the later of (the “Termination Date”): (a) November 1, 2017; or (b) the date of NYMIF'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 NYMIF's Trustees. Expenses associated with the Reorganization, which will be borne by NYMIF, are estimated to be $18,381. This amount, which is comprised of proxy expenses, is not considered material and does not impact NYMIF's annual fund operating expenses described above |
3 | For FMBDF, 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, extraordinary expenses, interest expense, line of credit expenses and proxy-related expenses, paid by FMBDF, if any) paid by FMDBF's A class (after the voluntary waivers and/or reimbursements) will not exceed 0.83% (the “Fee Limit) up to but not including the later of (the “Termination Date”): (a) August 1, 2018; or (b) the date of FMBDF'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 FMBDF's Directors. If this Reorganization is approved, the Termination Date will be extended to up to, but not including the later of: (a) January 1, 2019; or (b) the date of FMBDF's next effective Prospectus. |
Fund | 1 Year | 3 Years | 5 Years | 10 Years |
NYMIF– A | $581 | $858 | $1,156 | $2,001 |
FMBDF – A | $542 | $736 | $947 | $1,553 |
FMBDF – A, Pro Forma Combined | $543 | $739 | $952 | $1,564 |
Shareholder Fees | Reorganizing Fund (NYMIF)- B | Surviving Fund (FMBDF) - B | FMBDF - B Pro Forma Combined |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None | None | None |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | 5.50% | 5.50% | 5.50% |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | None | None | None |
Redemption Fee (as a percentage of amount redeemed, if applicable) | None | None | None |
Exchange Fee | None | None | None |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | |||
Management Fee | 0.40% | 0.47% | 0.47% |
Distribution (12b-1) Fee | 0.75% | 0.75% | 0.75% |
Other Expenses | 0.95% | 0.47% | 0.48% |
Total Annual Fund Operating Expenses | 2.10% | 1.69% | 1.70% |
Fee Waivers and/or Expense Reimbursements | (0.58)%1 | (0.10)%2 | (0.11)%2 |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 1.52% | 1.59% | 1.59% |
1 | For NYMIF, 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, extraordinary expenses, interest expense, line of credit expenses and proxy-related expenses, paid by NYMIF, if any) paid by NYMIF's B class (after the voluntary waivers and/or reimbursements) will not exceed 1.52% (the “Fee Limit) up to but not including the later of (the “Termination Date”): (a) November 1, 2017; or (b) the date of NYMIF'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 Board. Expenses associated with the Reorganization, which will be borne by NYMIF, are estimated to be $18,381. This amount, which is comprised of proxy expenses, is not considered material and does not impact NYMIF's annual fund operating expenses described above |
2 | For FMBDF, 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, extraordinary expenses, interest expense, line of credit expenses and proxy-related expenses, paid by FMBDF, if any) paid by FMBDF's B class (after the voluntary waivers and/or reimbursements) will not exceed 1.58% (the “Fee Limit) up to but not including the later of (the “Termination Date”): (a) August 1, 2018; or (b) the date of FMBDF'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 FMBDF's Directors. If this Reorganization is approved, the Termination Date will be extended to up to, but not including the later of: (a) January 1, 2019; or (b) the date of FMBDF's next effective Prospectus. |
Fund | 1 Year | 3 Years | 5 Years | 10 Years |
NYMIF– B (assuming redemption) | $763 | $1,058 | $1,329 | $2,431 |
NYMIF– B (assuming no redemption) | $213 | $658 | $1,129 | $2,431 |
FMBDF – B (assuming redemption) | $722 | $933 | $1,118 | $1,998 |
FMBDF – B (assuming no redemption) | $172 | $533 | $918 | $1,998 |
FMBDF – B, Pro Forma Combined (assuming redemption) | $723 | $936 | $1,123 | $2,009 |
FMBDF – B, Pro Forma Combined (assuming no redemption) | $173 | $536 | $923 | $2,009 |
1 Year | 5 Years | 10 Years | |
A: | |||
Return Before Taxes | (3.91)% | 2.01% | 2.57% |
Return After Taxes on Distributions | (3.91)% | 2.01% | 2.57% |
Return After Taxes on Distributions and Sale of Fund Shares | (1.01)% | 2.27% | 2.76% |
B: | |||
Return Before Taxes | (5.62)% | 1.83% | 2.43% |
S&P Municipal Bond New York Index1 (reflects no deduction for fees, expenses or taxes) | 0.56% | 3.43% | 4.21% |
S&P Municipal Bond NY, Investment Grade, 3-Year Plus Sub-Index2 (reflects no deduction for fees, expenses or taxes) | 0.39% | 3.63% | 4.51% |
Morningstar Muni New York Long Funds Average3 | 0.57% | 3.24% | 3.48% |
1 | The S&P Municipal Bond New York Index (NY Index) consists of bonds in the S&P Municipal Bond Index (Main Index) that have been issued by the state of New York or local governments or state or local government entities within New York. 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 NY, Investment Grade, 3-Year Plus Sub-Index (NYIG Index) represents the portion of the NY Index composed solely of bonds that are rated BBB-/Baa3 or higher with remaining maturities of more than three years 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. Funds designated within the Morningstar Muni New York Long Funds Average include those that invest at least 80% of assets in New York Municipal debt and have durations of more than 7 years (or, if duration is unavailable, average maturities of more than 12 years). |
1 Year | 5 Years | 10 Years | Start of Performance | |
A: | ||||
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% | — |
B: | ||||
Return Before Taxes | (5.83)% | 2.13% | 2.72% | — |
C: | ||||
Return Before Taxes | (1.44)% | 2.49% | 2.55% | — |
F (start of performance 5/31/2007): | ||||
Return Before Taxes | (1.63)% | 3.13% | — | 3.40% |
IS: | ||||
Return Before Taxes | 0.47% | 3.35% | 3.43% | — |
S&P Municipal Bond Investment Grade Index1 (reflects no deduction for fees, expenses or taxes) | 0.46% | 3.32% | 4.17% | — |
S&P Municipal Bond Index1,2 (reflects no deduction for fees, expenses or taxes) | 0.77% | 3.55% | 4.20% | — |
S&P Municipal Bond Investment Grade, 3-year plus, Non-AMT Index3 (reflects no deduction for fees, expenses or taxes) | 0.40% | 3.77% | 4.59% | — |
S&P Main 3-Year Plus Index4 (reflects no deduction for fees, expenses or taxes) | 0.72% | 4.02% | 4.61% | — |
Morningstar Municipal National Long Funds Average5 | 0.00% | 3.60% | 3.63% | — |
1 | The S&P Municipal Bond Investment Grade Index 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 Fund's Adviser has elected to change the benchmark from the S&P Municipal Bond Investment Grade Index to the Main Index to reflect the repositioning of the Fund's investment strategy. |
3 | 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. |
4 | The S&P Main 3-Year Plus Index consists of bonds in the Main Index that are rated at least BBB- by Standard & Poor's, Baa3 by Moody's or BBB- by Fitch Ratings. All bonds must also have a minimum maturity of three years and a maximum maturity of up to, but not including, fifteen years as measured from the rebalancing date. |
5 | 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. |
Federated Investment Management Company (investment adviser to both NYMIF & FMBDF) | |
NYMIF Portfolio Managers | FMBDF Portfolio Managers |
J. Scott Albrecht J. Scott Albrecht has been the Fund's Portfolio Manager since March 1995. Mr. Albrecht joined Federated in 1989. He became a Senior Vice President of the Fund's Adviser in January 2005 and served as a Vice President of the Fund's Adviser from 1994 through 2004. He has been a Senior Portfolio Manager since 1997 and was a Portfolio Manager from 1994 to 1996. Mr. Albrecht has received the Chartered Financial Analyst designation and an M.S. in Public Management from Carnegie Mellon University. | J. Scott Albrecht Same |
R. J.Gallo R.J. Gallo has been the Fund's Portfolio Manager since July of 2017. He is a Senior Portfolio Manager, Head of the Municipal Bond Investment Group, and is responsible for overseeing the macro risk elements in the portfolio. Mr. Gallo joined Federated in 2000 as an Investment Analyst and became a portfolio manager in 2002. He was appointed Senior Vice President of the Fund's Adviser in 2011. From 1996 to 2000, Mr. Gallo was a Financial Analyst and Trader at the Federal Reserve Bank of New York. Mr. Gallo has received the Chartered Financial Analyst designation and a Master's in Public Affairs with a concentration in Economics and Public Policy from Princeton University. |
Class A Shares: | |
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% |
Class A Shares (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% |
Class B Shares: | |
Advance Commission as a Percentage of Public Offering Price | |
All Purchase Amounts | Up to 5.00% |
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% |
• | Inter-fund Borrowing and Lending. The SEC has granted an exemption that permits the Funds and all other funds advised by subsidiaries of Federated Investors, Inc. (“Federated funds”) to lend and borrow money for certain temporary purposes directly to and from other Federated funds. Inter-fund borrowing and lending is permitted only: (a) to meet shareholder redemption requests; (b) to meet commitments arising from “failed” trades; and (c) for other temporary purposes. All inter-fund loans must be repaid in seven days or less. |
• | Committed Line of Credit. The Funds participate with certain other Federated funds, on a joint basis, in an up to $500,000,000 unsecured, 364-day, committed, revolving line of credit (“LOC”) agreement. The LOC was made available to finance temporarily the repurchase or redemption of shares of the funds, failed trades, payment of dividends, settlement of trades and for other short-term, temporary or emergency general business purposes. The Funds cannot borrow under the LOC if an inter-fund loan is outstanding. |
• | Redemption in Kind. Although the Funds intend to pay Share redemptions in cash, they reserve the right to pay the redemption price in whole or in part by an “in-kind” distribution of the Funds' portfolio securities. Because the Funds have elected to be governed by Rule 18f-1 under the 1940 Act, the Funds are obligated to pay Share redemptions to any one shareholder in cash only up to the lesser of $250,000 or 1% of the net assets represented by such Share class during any 90-day period. Redemptions in kind are made consistent with the procedures adopted by the Funds' Boards, which generally include distributions of a pro rata share of the Funds' portfolio assets. |
• | 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 Class B Share accounts to meet this minimum balance.); and |
• | for all Class B Share 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 each Fund's Prospectus. |
• | The Reorganization is intended to be structured as a tax-free Reorganization under Section 368(a)(1)(C) of the Code and is a preferable tax result for shareholders as compared to a liquidation of NYMIF (which would be a fully taxable redemption). |
• | Although the investment objectives and certain of the investment policies of NYMIF and FMBDF are different in certain respects, the broader focus of FMBDF's investment strategy of investing in a nationally diversified municipal bond portfolio allows the various portfolio investments of NYMIF to be permissible investments for FMBDF. |
• | Generally, FMBDF has stronger overall long-term performance, and there is no anticipated decline in services to Reorganizing Fund shareholders as a result of the Reorganization. The range and quality of the services that Reorganizing Fund shareholders will receive as shareholders of FMBDF will be comparable to the range and quality of services that they currently receive. |
• | The Reorganization requires shareholder approval due to: (i) material differences in the Funds' fundamental investment objectives; (ii) material differences in the Funds' advisory contracts, namely that NYMIF's advisory agreement with the Adviser provides for an annual investment advisory fee of 0.40% of average daily net assets and FMBDF's advisory contract with the Adviser provides for an annual investment advisory fee of 0.30% of average daily net assets, plus 4.50% of FMBDF's gross income. The blended fee of FMBDF could be higher or lower than the annual advisory fee of NYMIF. |
• | As a larger fund following the Reorganization, FMBDF may benefit from the potential for greater efficiencies and the ability to spread relative fixed costs over a larger asset base. |
• | The Board considered alternatives to the Reorganization, such as liquidation of NYMIF, and the reasons for favoring the Reorganization instead of the alternatives. |
• | The Board considered the terms and conditions of the Plan, as presented to the Board. |
• | NYMIF shareholders will lose the benefit of tax favored status of dividends under New York State and municipal income taxes. |
• | NYMIF shareholders will be merged into a fund with lower gross expenses. Although the net expenses of FMBDF are higher than those of NYMIF (and will be higher than those of NYMIF following the Reorganization), the Adviser recently increased the amount of voluntary fee waivers and/or expense reimbursements for each class of FMBDF to enhance their competitiveness and to reduce the extent to which FMBDF's net expenses will be greater than those of NYMIF in anticipation of the Reorganization. |
• | NYMIF will pay direct proxy expenses (e.g., mailing, processing, tabulation, printing and solicitation costs and expenses, as well as the cost associated with printing and mailing of prospectus supplements, as applicable) associated with the Reorganization estimated at $18,381; |
• | Brokerage expenses for NYMIF related to the disposition of portfolio securities by NYMIF prior to the Reorganization and the purchase of replacement securities are expected to be minimal; |
• | The Adviser will pay the other direct and indirect expenses of the Reorganization (consisting primarily of legal and accounting fees); |
• | The effect on the net asset value of NYMIF as a result of the payment of the direct proxy and brokerage expenses would be approximately $0.0069 per share; and |
• | There will be no dilution to shareholders in the transaction, because each NYMIF shareholder will become the owner of shares of FMBDF having a total net asset value equal to the total net asset value of his or her holdings in NYMIF on the date of the Reorganization. |
Fund | Total Net Assets | Shares Outstanding | Net Asset Value Per Share |
Federated New York Municipal Income Fund – Class A Shares | $26,252,934 | 2,521,775 | $10.41 |
Reorganization expenses | $(17,324) | ||
Share adjustment | (27,896) | ||
Federated Municipal Bond Fund, Inc. – Class A Shares | $300,376,574 | 28,561,914 | $10.52 |
Federated Municipal Bond Fund, Inc., Pro Forma Combined – Class A Shares | $326,612,184 | 31,055,793 | $10.52 |
Federated New York Municipal Income Fund – Class B Shares | $1,601,506 | 153,829 | $10.41 |
Reorganization expenses | $(1,057) | ||
Share adjustment | (1,839) | ||
Federated Municipal Bond Fund, Inc. – Class B Shares | $3,865,585 | 367,275 | $10.53 |
Federated Municipal Bond Fund, Inc., Pro Forma Combined – Class B Shares | $5,466,034 | 519,265 | $10.53 |
Federated Municipal Bond Fund, Inc. – Class C Shares | $16,225,186 | 1,541,546 | $10.53 |
Federated Municipal Bond Fund, Inc., Pro Forma Combined – Class C Shares | $16,225,186 | 1,541,546 | $10.53 |
Federated Municipal Bond Fund, Inc. – Class F Shares | $27,568,710 | 2,621,956 | $10.51 |
Federated Municipal Bond Fund, Inc., Pro Forma Combined – Class F Shares | $27,568,710 | 2,621,956 | $10.51 |
Fund | Total Net Assets | Shares Outstanding | Net Asset Value Per Share |
Federated Municipal Bond Fund, Inc. – Class IS | $100 | 10 | $10.52 |
Federated Municipal Bond Fund, Inc., Pro Forma Combined – Class IS | $100 | 10 | $10.52 |
• | the Reorganization as set forth in the Plan will constitute a tax-free reorganization under section 368(a) of the Code, and NYMIF and FMBDF each will be a “party to a reorganization” within the meaning of section 368(b) of the Code; |
• | no gain or loss will be recognized by FMBDF upon its receipt of NYMIF's assets in exchange for Shares of FMBDF; |
• | no gain or loss will be recognized by NYMIF upon transfer of its assets to FMBDF solely in exchange for the Shares of FMBDF or upon the distribution of FMBDF Shares to NYMIF's shareholders in exchange for their NYMIF Shares; |
• | no gain or loss will be recognized by shareholders of NYMIF upon exchange of their NYMIF Shares for FMBDF Shares; |
• | the tax basis of the assets of NYMIF in the hands of FMBDF will be the same as the tax basis of such assets to NYMIF immediately prior to the Reorganization; |
• | the aggregate tax basis of FMBDF Shares received by each shareholder of NYMIF pursuant to the Reorganization will be the same as the aggregate tax basis of the Shares of NYMIF held by such shareholder immediately prior to the Reorganization; |
• | the holding period of FMBDF's Shares received by each shareholder of NYMIF will include the period during which NYMIF's Shares exchanged therefore were held by such shareholder, provided the Shares of NYMIF were held as capital assets on the date of the Reorganization; and |
• | the holding period of the assets of NYMIF in the hands of FMBDF will include the period during which those assets were held by NYMIF. |
NYMIF (Reorganizing Fund) | FMBDF (Surviving Fund) | |||
Date | Amount | Date | Amount | |
Capital Loss Carryforward | 8/31/2016 | $2,609,302 | 3/31/2017 | $7,068,459 |
Year-to-Date Realized Gain (Loss) | 6/30/2017 | $404,576 | 6/30/2017 | $1,472,968 |
Net Unrealized Gain (Loss) | 6/30/2017 | $1,272,278 | 6/30/2017 | $14,817,223 |
CATEGORY | SHAREHOLDER RIGHTS FMBDF | SHAREHOLDER RIGHTS NYMIF |
Preemptive Rights | None | Same |
Preferences | None | Same |
Appraisal Rights | None | Same |
Conversion Rights (other than intra-fund share conversion rights as provided in the prospectuses of FMBDF and NYMIF) | None | Same |
Exchange Rights (other than the right to exchange for shares of other Federated mutual funds as provided in the prospectuses of FMBDF and NYMIF) | None | Same |
Minimum Account Size | $1,500 for A, B, and C classes (in the case of IRAs, $250) and $25,000 for the IS class. | $1,500 for A and B classes |
Annual Meeting | Not required | Not required |
CATEGORY | SHAREHOLDER RIGHTS FMBDF | SHAREHOLDER RIGHTS NYMIF |
Right to Call Shareholder Meetings | Special Meetings of Shareholders of the Company or of a particular Series or Class may be called by the Chairman, or by any Director; and shall be called by the Secretary whenever ordered by the Chairman, the Board of Directors, or as requested in writing by Shareholders entitled to cast at least 10% of the voter shares entitled to be cast at the meeting. | Special Meetings of Shareholders of the Trust or of a particular Series or Class shall be called by the Trustees or the Chief Executive Officer of the Trust or requested in writing by the holder or holders of at least one-tenth of the outstanding shares of the Trust or of the relevant Series or Class, entitled to vote. |
Notice of Meeting | The Secretary shall give not less than ten nor more than 90 days' written notice of the meeting. | Shareholders shall be entitled to at least fifteen days' notice of any shareholder meeting. |
Record Date for Meetings | The Board of Directors may fix a date not more than 90 days and not less than ten before the meeting date as the record date for determining shareholders entitled to notice of or to vote at any meeting of shareholders. | The Board of Trustees may fix a date not more than 60 days before the meeting date as the record date for determining shareholders entitled to notice of or to vote at any meeting of shareholders. |
Quorum for Meetings | The presence in person or by proxy of holders of one-third of the shares of stock of the Corporation entitled to vote without regard to class shall constitute a quorum at any meeting of the shareholders, except with respect to any matter which by law requires the separate approval of one or more classes of stock, in which case the presence in person or by proxy of the holders of one-third of the shares of stock of each class entitled to vote separately on the matter shall constitute a quorum. | Except as otherwise provided by law, to constitute a quorum for the transaction of any business at any meeting of Shareholders there must be present, in person or by proxy, holders of more than fifty percent of the total number of outstanding Shares of all Series and Classes and entitled to vote at such meeting. When any one or more Series or Classes, entitled to vote as a single Series or Class, more than fifty percent of the Shares of each such Series or Class entitled to vote shall constitute a quorum. |
Vote Required for Election of Trustees | A majority of the aggregate number of votes entitled to be cast. | A plurality of shares cast at a meeting of shareholders of the Trust. |
Adjournment of Meetings | In the absence of a quorum at any meeting, a majority of those Shareholders present in person or by proxy may adjourn the meeting from time to time to a date not later than 120 days after the original record date without further notice than by announcement to be given at the meeting until a quorum, as above defined, shall be present. Any business may be transacted at the adjourned meeting which might have been transacted at the meeting originally called had the same been held at the time so called. | If a quorum shall not be present for the purpose of any vote that may properly come before the meeting, the Shares present in person or by proxy and entitled to vote at such meeting on such matter may, by plurality vote, adjourn the meeting from time to time to such place and time without further notice than by announcement to be given at the meeting until a quorum entitled to vote on such matter shall be present, whereupon any such matter may be voted upon at the meeting as though held when originally convened. |
Removal of Trustees by Shareholders | At any meeting of Shareholders duly called for such purpose, any Director may by the vote of a majority of all of the Shares entitled to vote be removed from office. | A Trustee may be removed at any meeting of shareholders of the Trust by a vote of two-thirds of the outstanding shares. |
CATEGORY | SHAREHOLDER RIGHTS FMBDF | SHAREHOLDER RIGHTS NYMIF |
Personal Liability of Officers and Trustees | The Corporation shall indemnify its directors to the fullest extent that indemnification of directors is permitted by the Maryland General Corporation Law. The Corporation shall indemnify its officers to the same extent as its directors and to such further extent as is consistent with law. The Corporation shall indemnify its directors and officers who while serving as directors or officers also serve at the request of the Corporation as a director, officer, partner, trustee, employee, agent or fiduciary of another corporation, partnership joint venture, trust, other enterprise or employee benefit plan to the fullest extent consistent with law. The indemnification and other rights provided by this Article shall continue as to a person who has ceased to be a director or officer and shall inure to the benefit of the heirs, executors and administrators of such a person. This Article shall not protect any such person against any liability to the Corporation or any Shareholder thereof to which such person would otherwise be subject by reason of (i) willful misfeasance, (ii) bad faith, (iii) gross negligence or (iv) reckless disregard of the duties involved in the conduct of his office (“disabling conduct”). | The Trust agrees to indemnify each person who at any time serves as a Trustee or officer of the Trust (each such person being an “indemnitee”) against any liabilities and expenses, including amounts paid in satisfaction of judgments, in compromise or as fines and penalties and counsel fees incurred by such indemnitee in connection with the defense or disposition of any action, suit or other proceeding, whether civil or criminal, before any court or administrative or investigative body in which he may be or may have been involved as a party or otherwise or with which he may be or may have been threatened, by virtue of his being or having been a Trustee or officer of the Trust or his serving or having served as a trustee, director, officer, partner, or fiduciary of another trust, corporation, partnership, joint venture, or other enterprise at the request of the Trust, provided, however, that no indemnitee shall be indemnified hereunder against any liability to any person or any expense of such indemnitee arising by reason of: (i) willful misfeasance; (ii) bad faith; (iii) gross negligence; or (iv) reckless disregard of the duties involved in the conduct of his position (the conduct referred to in such clauses (i) through (iv) being sometimes referred to herein as “disabling conduct”). |
Personal Liability of Shareholders | None | Under certain circumstances, shareholders may be held personally liable as partners under Massachusetts law for obligations of the Trust. To
protect its shareholders, the Trust has filed legal documents with Massachusetts that expressly disclaim the liability of its shareholders for acts or obligations of the Trust. In the unlikely event a shareholder is held personally liable for the Trust's obligations, the Trust is required by its Declaration of Trust to use its property to protect or compensate the shareholder. On request, the Trust will defend any claim made and pay any judgment against a shareholder for any act or obligation of the Trust. Therefore, financial loss resulting from liability as a shareholder will occur only if the Trust itself cannot meet its obligations to indemnify shareholders and pay judgments against them. |
CATEGORY | SHAREHOLDER RIGHTS FMBDF | SHAREHOLDER RIGHTS NYMIF |
Right of Inspection | The Board of Directors shall, subject to the laws of Maryland, have the power to determine, from time to time, whether and to what extent and at what times and places and under what conditions and regulations any accounts and books of the Corporation, or any of them, shall be open to the inspection of the Stockholders. | Under Massachusetts law, and under the Bylaws of the Trust, the trustees of a Massachusetts business trust may from time to time determine whether and to what extent, and at what times and places, and under what conditions and regulations the accounts and books of the Trust maintained on behalf of each series and class of shares of the Trust or any of them may be open to the inspection of the shareholders of any series or class; and no shareholder may have any right to inspect any account or book or document of the Trust except that, to the extent such account or book or document relates to the series or class in which he is a shareholder or the Trust generally, such shareholder will have such right of inspection as conferred by laws or authorized by the trustees or by resolution of the shareholders of the relevant series or class. |
Number of Authorized Shares; Par Value | 1,000,000,000 shares of common stock, all of which have a par value of $0.01 per share. | Unlimited; No Par Value |
Name of Fund | Share Class | Outstanding Shares |
Federated New York Municipal Income Fund | Class A Shares | 2,468,305 |
Class B Shares | 149,104 |
Title of Class | Name and Address | Shares | Percentage of Shares |
Federated New York Municipal Income Fund–Class A Shares | |||
Morgan Stanley & Co., Jersey City, NJ | 199,051 | 8.06% | |
Charles Schwab & Co., Inc., San Francisco, CA | 247,991 | 10.05% | |
MLPF&S, Jacksonville, FL | 298,815 | 12.11% | |
Pershing LLC, Jersey City, NJ | 557,532 | 22.59% | |
Federated New York Municipal Income Fund–Class B Shares | |||
Pershing LLC, Jersey City, NJ | 14,267 | 9.57% | |
National Financial Services LLC, New York, NJ | 20,020 | 13.43% | |
Wells Fargo Clearing Services LLC, St. Louis, MO | 24,146 | 16.19% | |
Charles Schwab & Co. Inc., San Francisco, CA | 78,489 | 52.64% |
Name of Fund | Share Class | Outstanding Shares |
Federated Municipal Bond Fund | Class A Shares | 28,320,473 |
Class B Shares | 356,418 | |
Class C Shares | 1,511,673 | |
Class F Shares | 2,629,344 | |
Institutional Shares | 25,017 |
Title of Class | Name and Address | Shares | Percentage of Shares |
Federated Municipal Bond Fund–Class A Shares | |||
Pershing LLC | 1,428,010 | 5.04% | |
National Financial Services LLC, New York, NY | 2,426,340 | 8.57% | |
Wells Fargo Clearing Services LLC, St. Louis, MO | 2,445,374 | 8.63% | |
Edward D. Jones & Co., Saint Louis, MO | 4,343,838 | 15.34% | |
Federated Municipal Bond Fund–Class B Shares | |||
National Financial Services LLC, New York, NY | 35,087 | 9.84% | |
Wells Fargo Clearing Services LLC, St. Louis, MO | 68,418 | 19.20% | |
Edward D. Jones & Co., Saint Louis, MO | 80,416 | 22.56% | |
Pershing LLC | 111,863 | 31.39% | |
Federated Municipal Bond Fund–Class C Shares | |||
UBS WM USA, Weehawken, NJ | 76,545 | 5.06% | |
Morgan Stanley & Co., Jersey City, NJ | 100,458 | 6.65% | |
Raymond James, St. Petersburg, FL | 113,951 | 7.54% | |
Edward D. Jones & Co., Saint Louis, MO | 121,010 | 8.01% | |
Pershing LLC, Jersey City, NJ | 132,453 | 8.76% | |
MLPF&S, Jacksonville, FL | 159,014 | 10.52% | |
National Financial Services LLC, New York, NY | 217,427 | 14.38% | |
Wells Fargo Clearing Services LLC, St. Louis, MO | 260,133 | 17.21% | |
Federated Municipal Bond Fund–Class F Shares | |||
Wells Fargo Clearing Services LLC, St. Louis, MO | 147,087 | 5.59% | |
Charles Schwab & Co. Inc., San Francisco, CA | 166,670 | 6.34% | |
Pershing LLC, Jersey City, NJ | 324,104 | 12.33% | |
National Financial Services LLC, New York, NY | 352,068 | 13.39% | |
Edward D. Jones & Co., Saint Louis, MO | 1,389,010 | 52.38% | |
Federated Municipal Bond Fund–Institutional Shares | |||
Stifel Nicolaus & Co. Inc., Saint Louis, MO | 25,008 | 99.96% |
a) | The Reorganizing Fund is a legally designated, separate series of a business trust duly organized and validly existing under the laws of the Commonwealth of Massachusetts. |
b) | The Reorganizing Fund Registrant is registered as an open-end management investment company under the 1940 Act, the Reorganizing Fund Registrant's registration with the Securities and Exchange Commission (the “Commission”) as an investment company under the 1940 Act is in full force and effect, and the Reorganizing Fund Shares are registered under the Securities Act of 1933, as amended (“1933 Act”), and such registration has not been revoked or rescinded and is in full force and effect. |
c) | The current prospectus and statement of additional information of the Reorganizing Fund conform in all material respects to the applicable requirements of the 1933 Act and the 1940 Act, and the rules and regulations thereunder, and do not include any untrue statement of a material fact or omit to state any material fact required to be stated or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. |
d) | The Reorganizing Fund is not in violation of, and the execution, delivery, and performance of this Agreement (subject to shareholder approval) will not result in the violation of, any provision of the Reorganizing Fund Registrant's Declaration of Trust or By-Laws or of any material agreement, indenture, instrument, contract, lease, or other undertaking to which the Reorganizing Fund is a party or by which the Reorganizing Fund is bound. |
e) | The Reorganizing Fund has no material contracts or other commitments (other than this Agreement) that will be terminated with liability to it before the Closing Date, except for liabilities, if any, to be discharged as provided in paragraph 1.3 hereof. All contracts of the Reorganizing Fund will be terminated with respect to the Reorganizing Fund as of the Closing Date (including any such contracts with affiliated persons of the Reorganizing Fund). |
f) | Except as otherwise disclosed in writing to and accepted by the Surviving Fund, no litigation, administrative proceeding, or investigation of or before any court or governmental body is presently pending or to its knowledge threatened against the Reorganizing Fund or any of its properties or assets. Any such litigation, if adversely determined, would not materially and adversely affect the Reorganizing Fund's financial condition, the conduct of its business, or the ability of the Reorganizing Fund to carry out the transactions contemplated by this Agreement. The Reorganizing Fund knows of no facts that might form the basis for the institution of such proceedings and is not a party to or subject to the provisions of any order, decree, or judgment of any court or governmental body that materially and adversely affects its business or its ability to consummate the transactions contemplated herein. |
g) | The audited financial statements of the Reorganizing Fund as of August 31, 2016, and for the fiscal year then ended have been prepared in accordance with generally accepted accounting principles, and such statements (copies of which have been furnished to the Surviving Fund) fairly reflect the financial condition of the Reorganizing Fund as of such date, and there are no known contingent liabilities of the Reorganizing Fund as of such date that are not disclosed in such statements. |
h) | The unaudited financial statements of the Reorganizing Fund as of February 28, 2017, and for the six month then ended have been prepared in accordance with generally accepted accounting principles, and such statements (copies of which have been furnished to the Surviving Fund) fairly reflect the financial condition of the Reorganizing Fund as of such date that are not disclosed in such statements. |
i) | Since the date of the financial statements referred to in sub-paragraph (g) above, there have been no material adverse changes in the Reorganizing Fund's financial condition, assets, liabilities or business (other than changes occurring in the ordinary course of business), or any incurrence by the Reorganizing Fund of indebtedness maturing more than one year from the date such indebtedness was incurred, except as otherwise disclosed to and accepted by the Surviving Fund. For the purposes of this sub-paragraph (h), a decline in the net asset value of the Reorganizing Fund shall not constitute a material adverse change. |
j) | As of the date hereof, except as previously disclosed to the Surviving Fund in writing, and except as have been corrected as required by applicable law, and to the best of the Reorganizing Fund's knowledge, there have been no material miscalculations of the NAV of the Reorganizing Fund or the NAV per share of any class or series of Reorganizing Fund Shares during the twelve-month period preceding the date hereof and preceding the Closing Date, and all such calculations have been made in accordance with the applicable provisions of the 1940 Act. |
k) | The minute books and other similar records of the Reorganizing Fund as made available to the Surviving Fund prior to the execution of this Agreement contain a true and complete record of all action taken at all meetings and by all written consents in lieu of meetings of the shareholders of the Reorganizing Fund, the Reorganizing Fund's Board and committees of the Reorganizing Fund's Board. The stock transfer ledgers and other similar records of the Reorganizing Fund as made available to the Surviving Fund prior to the execution of this Agreement, and as existing on the Closing Date, accurately reflect all record transfers prior to the execution of this Agreement, or the Closing Date, as applicable, in the Reorganizing Fund Shares. |
l) | The Reorganizing Fund has maintained, or caused to be maintained on its behalf, all books and records required of a registered investment company in compliance with the requirements of Section 31 of the 1940 Act and rules thereunder. |
m) | All federal and other tax returns and reports of the Reorganizing Fund required by law to be filed (taking into account permitted extensions for filings) have been timely filed and are complete and correct in all material respects, and all federal and other taxes (whether or not shown as due on such returns and reports) have been paid, or provision shall have been made for the payment thereof. To the best of the Reorganizing Fund's knowledge, no such return is currently under audit, and no assessment has been asserted or proposed with respect to such returns. |
n) | All issued and outstanding Reorganizing Fund Shares are duly and validly issued and outstanding, fully paid and non-assessable (except as described in the Registration Statement) by the Reorganizing Fund. All of the issued and outstanding Reorganizing Fund Shares will, at the time of the closing, be held by the persons and in the amounts set forth in the records of the Reorganizing Fund's transfer agent as provided in paragraph 3.4. The Reorganizing Fund has no outstanding options, warrants, or other rights to subscribe for or purchase any of the Reorganizing Fund Shares, and has no outstanding securities convertible into any of the Reorganizing Fund Shares. |
o) | At the closing, the Reorganizing Fund will have good and marketable title to the Reorganizing Fund's assets to be transferred to the Surviving Fund pursuant to paragraph 1.2, and full right, power, and authority to sell, assign, transfer, and deliver such assets hereunder, free of any lien or other encumbrance, except those liens or encumbrances to which the Surviving Fund has received notice, and, upon delivery and payment for such assets, and the filing of any articles, certificates or other documents under the laws of the Commonwealth of Massachusetts, the Surviving Fund will acquire good and marketable title, subject to no restrictions on the full transfer of such assets, other than such restrictions as might arise under the 1933 Act, and other than as disclosed to and accepted by the Surviving Fund. |
p) | The execution, delivery and performance of this Agreement have been duly authorized by all necessary action on the part of the Reorganizing Fund. Subject to approval by the Reorganizing Fund Shareholders, this Agreement constitutes a valid and binding obligation of the Reorganizing Fund, enforceable in accordance with its terms, subject as to enforcement, to bankruptcy, insolvency, reorganization, moratorium, and other laws relating to or affecting creditors' rights and to general equity principles. |
q) | The information to be furnished by the Reorganizing Fund for use in no-action letters, applications for orders, registration statements, proxy materials, and other documents that may be necessary in connection with the transactions contemplated herein shall be accurate and complete in all material respects and shall comply in all material respects with federal securities and other laws and regulations. |
r) | From the effective date of the Registration Statement (as defined in paragraph 5.7), through the time of the meeting of the Reorganizing Fund Shareholders and on the Closing Date, any written information furnished by the Reorganizing Fund Registrant with respect to the Reorganizing Fund for use in the Proxy Materials (as defined in paragraph 5.7), or any other materials provided in connection with the Reorganization, does not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated or necessary to make the statements, in light of the circumstances under which such statements were made, not misleading. |
s) | The Reorganizing Fund has qualified and elected to be treated as a “regulated investment company” under the Code (a “RIC”), as of and since its first taxable year; and qualifies and will continue to qualify as a RIC under the Code for its taxable year ending upon the Closing Date. |
t) | No governmental consents, approvals, authorizations or filings are required under the 1933 Act, the Securities Exchange Act of 1934, as amended (the “1934 Act”), the 1940 Act or Massachusetts law for the execution of this Agreement by the Reorganizing Fund Registrant, for itself and on behalf of the Reorganizing Fund, or the performance of the Agreement by the Reorganizing Fund Registrant, for itself and on behalf of the Reorganizing Fund, except, in each case, for (i) the effectiveness of the Registration Statement, and the filing of any articles, certificates or other documents that may be required under Massachusetts law, (ii) such other consents, approvals, authorizations and filings as have been made or received, and (iii) such consents, approvals, authorizations and filings as may be required subsequent to the Closing Date, it being understood, however, that this Agreement and the transactions contemplated herein must be approved by the shareholders of the Reorganizing Fund as described in paragraph 5.2. |
u) | The Reorganizing Fund, and the Reorganizing Fund Registrant with respect to the Reorganizing Fund, has been and is in compliance in all material respects with the investment policies and restrictions set forth in its registration statement currently in effect. The value of the net assets of the Reorganizing Fund has been and is being determined using portfolio valuation methods that comply in all material respects with the methods described in its registration statement and the requirements of the 1940 Act. There are no legal or governmental actions, investigations, inquiries, or proceedings pending or, to the knowledge of the Reorganizing Fund, threatened against the Reorganizing Fund, or the Reorganizing Fund Registrant with respect to the Reorganizing Fund, that would question the right, power or capacity of (a) the Reorganizing Fund to conduct its business as conducted now or at any time in the past, or (b) the Reorganizing Fund Registrant's ability to enter into this Agreement on behalf of the Reorganizing Fund or the Reorganizing Fund's ability to consummate the transactions contemplated by this Agreement. |
a) | The Surviving Fund is a corporation duly organized, validly existing, and in good standing under the laws of the state of Maryland. |
b) | The Surviving Fund is registered as an open-end management investment company under the 1940 Act, the Surviving Fund's registration with the Commission as an investment company under the 1940 Act is in full force and effect, and the Surviving Fund Shares are registered under the 1933 Act and such registration has not been revoked or rescinded and is in full force and effect. |
c) | The current prospectus and statement of additional information of the Surviving Fund conform in all material respects to the applicable requirements of the 1933 Act and the 1940 Act and the rules and regulations thereunder, and do not include any untrue statement of a material fact or omit to state any material fact required to be stated or necessary to make such statements therein, in light of the circumstances under which they were made, not misleading. |
d) | The Surviving Fund is not in violation of, and the execution, delivery and performance of this Agreement will not, result in a violation of, the Surviving Fund's Articles of Incorporation or By-Laws or of any material agreement, indenture, instrument, contract, lease, or other undertaking to which the Surviving Fund is a party or by which it is bound. |
e) | Except as otherwise disclosed in writing to the Reorganizing Fund, no litigation, administrative proceeding or investigation of or before any court or governmental body is presently pending or to its knowledge threatened against the Surviving Fund or any of its properties or assets. Any such litigation, if adversely determined, would not materially and adversely affect its financial condition, the conduct of its business or the ability of the Surviving Fund to carry out the transactions contemplated by this Agreement. The Surviving Fund knows of no facts that might form the basis for the institution of such proceedings and it is not a party to or subject to the provisions of any order, decree, or judgment of any court or governmental body that materially and adversely affects its business or its ability to consummate the transaction contemplated herein. |
f) | The audited financial statements of the Surviving Fund as of March 31, 2017, and for the fiscal year then ended have been prepared in accordance with generally accepted accounting principles, and such statements (copies of which have been furnished to the Reorganizing Fund) fairly reflect the financial condition of the Surviving Fund as of such date, and there are no known contingent liabilities of the Surviving Fund as of such date that are not disclosed in such statements. |
g) | Since the date of the financial statements referred to in sub-paragraph (h) above, there have been no material adverse changes in the Surviving Fund's financial condition, assets, liabilities or business (other than changes occurring in the ordinary course of business), or any incurrence by the Surviving Fund of indebtedness maturing more than one year from the date such indebtedness was incurred, except as otherwise disclosed to and accepted by the Reorganizing Fund. For the purposes of this sub-paragraph (g), a decline in the NAV of the Surviving Fund shall not constitute a material adverse change. |
h) | All federal and other tax returns and reports of the Surviving Fund required by law to be filed (taking into account permitted extensions for filing) have been timely filed and are complete and correct in all material respects, and all federal and other taxes (whether or not shown as due on such returns and reports) have been paid, or provision shall have been made for the payment thereof. To the best of the Surviving Fund's knowledge, no such return is currently under audit, and no assessment has been asserted with respect to such returns. |
i) | All issued and outstanding Surviving Fund Shares are duly and validly issued and outstanding, fully paid and non-assessable by the Surviving Fund (except as described in the Registration Statement). The Surviving Fund has no outstanding options, warrants, or other rights to subscribe for or purchase any Surviving Fund Shares, and there are no outstanding securities convertible into any Surviving Fund Shares. |
j) | The execution, delivery and performance of this Agreement have been duly authorized by all necessary action on the part of the Surviving Fund. This Agreement constitutes a valid and binding obligation of the Surviving Fund, enforceable in accordance with its terms, subject as to enforcement, to bankruptcy, insolvency, reorganization, moratorium, and other laws relating to or affecting creditors' rights and to general equity principles. |
k) | Surviving Fund Shares to be issued and delivered to the Reorganizing Fund for the account of the Reorganizing Fund Shareholders pursuant to the terms of this Agreement will, as of the closing, have been duly authorized. When so issued and delivered, such shares will be duly and validly issued Surviving Fund Shares, and will be fully paid and non-assessable. |
l) | The information to be furnished by the Surviving Fund for use in no-action letters, applications for orders, registration statements, proxy materials and other documents that may be necessary in connection with the transactions contemplated herein shall be accurate and complete in all material respects and shall comply in all material respects with federal securities and other laws and regulations. |
m) | From the effective date of the Registration Statement (as defined in paragraph 5.7), through the time of the meeting of the Reorganizing Fund Shareholders and on the Closing Date, any written information furnished by the Surviving Fund Registrant with respect to the Surviving Fund for use in the Proxy Materials (as defined in paragraph 5.7), or any other materials provided in connection with the Reorganization, does not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated or necessary to make the statements, in light of the circumstances under which such statements were made, not misleading. |
n) | The Surviving Fund has qualified and elected to be treated as a RIC under the Code as of and since its first taxable year; and qualifies and shall continue to qualify as a RIC under the Code for its current taxable year. |
o) | No governmental consents, approvals, authorizations or filings are required under the 1933 Act, the 1934 Act, the 1940 Act or Maryland law for the execution of this Agreement by the Surviving Fund or the performance of the Agreement by the Surviving Fund except, in each case, for (i) the effectiveness of the Registration Statement, and the filing of any articles, certificates or other documents that may be required under Maryland law, (ii) such other consents, approvals, authorizations and filings as have been made or received, and (iii) such consents, approvals, authorizations and filings as may be required subsequent to the Closing Date. |
p) | The Surviving Fund agrees to use all reasonable efforts to obtain the approvals and authorizations required by the 1933 Act, the 1940 Act, and any state Blue Sky or securities laws as it may deem appropriate in order to continue its operations after the Closing Date. |
a) | The transfer of all or substantially all of the Reorganizing Fund's assets to the Surviving Fund solely in exchange for Surviving Fund Shares (followed by the distribution of Surviving Fund Shares to the Reorganizing Fund Shareholders in dissolution, liquidation and termination of the Reorganizing Fund) will constitute a “reorganization” within the meaning of Section 368(a) of the Code, and the Surviving Fund and the Reorganizing Fund will each be a “party to a reorganization” within the meaning of Section 368(b) of the Code. |
b) | No gain or loss will be recognized by the Surviving Fund upon the receipt of the assets of the Reorganizing Fund solely in exchange for Surviving Fund Shares. |
c) | No gain or loss will be recognized by the Reorganizing Fund upon the transfer of the Reorganizing Fund's assets to the Surviving Fund solely in exchange for Surviving Fund Shares or upon the distribution (whether actual or constructive) of Surviving Fund Shares to Reorganizing Fund Shareholders in exchange for their Reorganizing Fund Shares. |
d) | No gain or loss will be recognized by any Reorganizing Fund Shareholder upon the exchange of its Reorganizing Fund Shares for Surviving Fund Shares. |
e) | The aggregate tax basis of the Surviving Fund Shares received by each Reorganizing Fund Shareholder pursuant to the Reorganization will be the same as the aggregate tax basis of the Reorganizing Fund Shares held by such Reorganizing Fund Shareholder immediately prior to the Reorganization. The holding period of Surviving Fund Shares received by each Reorganizing Fund Shareholder will include the period during which the Reorganizing Fund Shares exchanged therefor were held by such shareholder, provided the Reorganizing Fund Shares are held as capital assets at the time of the Reorganization. |
f) | The tax basis of the Reorganizing Fund's assets acquired by the Surviving Fund will be the same as the tax basis of such assets to the Reorganizing Fund immediately prior to the Reorganization. The holding period of the assets of the Reorganizing Fund in the hands of the Surviving Fund will include the period during which those assets were held by the Reorganizing Fund. |
Name: Peter J. Germain |
Title: Assistant Secretary |
Six Months Ended (unaudited) 2/28/2017 | Year Ended August 31, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | ||
Net Asset Value, Beginning of Period | $10.71 | $10.33 | $10.45 | $9.86 | $10.65 | $10.13 |
Income From Investment Operations: | ||||||
Net investment income | 0.15 | 0.30 | 0.32 | 0.33 | 0.34 | 0.36 |
Net realized and unrealized gain (loss) on investments and futures contracts | (0.45) | 0.38 | (0.12) | 0.59 | (0.80) | 0.52 |
TOTAL FROM INVESTMENT OPERATIONS | (0.30) | 0.68 | 0.20 | 0.92 | (0.46) | 0.88 |
Less Distributions: | ||||||
Distributions from net investment income | (0.14) | (0.30) | (0.32) | (0.33) | (0.33) | (0.36) |
Net Asset Value, End of Period | $10.27 | $10.71 | $10.33 | $10.45 | $9.86 | $10.65 |
Total Return1 | (2.76)% | 6.72% | 1.94% | 9.46% | (4.50)% | 8.88% |
Ratios to Average Net Assets: | ||||||
Net expenses | 0.76%2 | 0.76% | 0.76% | 0.76% | 0.76% | 0.62% |
Net investment income | 2.83%2 | 2.89% | 3.10% | 3.26% | 3.15% | 3.49% |
Expense waiver/reimbursement3 | 0.69%2 | 0.59% | 0.65% | 0.70% | 0.53% | 1.18% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $26,843 | $31,472 | $28,576 | $28,022 | $27,534 | $33,073 |
Portfolio turnover | 4% | 10% | 17% | 27% | 7% | 19% |
1 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales change, if applicable. Total returns for periods of less than one year are not annualized. |
2 | Computed on an annualized basis. |
3 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Six Months Ended (unaudited) 2/28/2017 | Year Ended August 31, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | ||
Net Asset Value, Beginning of Period | $10.71 | $10.33 | $10.45 | $9.86 | $10.65 | $10.13 |
Income From Investment Operations: | ||||||
Net Investment Income | 0.11 | 0.23 | 0.25 | 0.25 | 0.25 | 0.28 |
Net realized and unrealized gain (loss) on investments and futures contracts | (0.44) | 0.38 | (0.13) | 0.59 | (0.79) | 0.53 |
TOTAL FROM INVESTMENT OPERATIONS | (0.33) | 0.61 | 0.12 | 0.84 | (0.54) | 0.81 |
Less Distributions: | ||||||
Distributions from net investment income | (0.11) | (0.23) | (0.24) | (0.25) | (0.25) | (0.29) |
Net Asset Value, End of Period | $10.27 | $10.71 | $10.33 | $10.45 | $9.86 | $10.65 |
Total Return1 | (3.12)% | 5.92% | 1.18% | 8.65% | (5.21)% | 8.07% |
Ratios to Average Net Assets: | ||||||
Net expenses | 1.52%2 | 1.52% | 1.52% | 1.52% | 1.52% | 1.38% |
Net investment income | 2.06%2 | 2.14% | 2.34% | 2.50% | 2.37% | 2.72% |
Expense waiver/reimbursement3 | 0.68%2 | 0.58% | 0.65% | 0.69% | 0.52% | 1.17% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $1,604 | $1,869 | $2,130 | $2,562 | $2,661 | $3,022 |
Portfolio turnover | 4% | 10% | 17% | 27% | 7% | 19% |
1 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales change, if applicable. Total returns for periods of less than one year are not annualized. |
2 | Computed on an annualized basis. |
3 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Year Ended March 31 | 2017 | 2016 | 2015 | 2014 | 2013 |
Net Asset Value, Beginning of Period | $10.68 | $10.66 | $10.27 | $10.73 | $10.42 |
Income From Investment Operations: | |||||
Net investment income1 | 0.33 | 0.33 | 0.34 | 0.35 | 0.36 |
Net realized and unrealized gain (loss) on investments and futures contracts | (0.31) | 0.01 | 0.39 | (0.46) | 0.30 |
TOTAL FROM INVESTMENT OPERATIONS | 0.02 | 0.34 | 0.73 | (0.11) | 0.66 |
Less Distributions: | |||||
Distributions from net investment income | (0.32) | (0.32) | (0.34) | (0.35) | (0.35) |
Net Asset Value, End of Period | $10.38 | $10.68 | $10.66 | $10.27 | $10.73 |
Total Return2 | 0.13% | 3.31% | 7.16% | (0.97)% | 6.43% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% |
Net investment income | 3.06% | 3.10% | 3.23% | 3.42% | 3.33% |
Expense waiver/reimbursement3 | 0.07% | 0.07% | 0.08% | 0.08% | 0.07% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $304,271 | $331,876 | $346,803 | $355,711 | $454,722 |
Portfolio turnover | 14% | 25% | 16% | 8% | 22% |
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. |
Year Ended March 31 | 2017 | 2016 | 2015 | 2014 | 2013 |
Net Asset Value, Beginning of Period | $10.69 | $10.66 | $10.27 | $10.73 | $10.42 |
Income From Investment Operations: | |||||
Net investment income1 | 0.24 | 0.24 | 0.25 | 0.27 | 0.27 |
Net realized and unrealized gain (loss) on investments and futures contracts | (0.32) | 0.03 | 0.39 | (0.47) | 0.31 |
TOTAL FROM INVESTMENT OPERATIONS | (0.08) | 0.27 | 0.64 | (0.20) | 0.58 |
Less Distributions: | |||||
Distributions from net investment income | (0.23) | (0.24) | (0.25) | (0.26) | (0.27) |
Net Asset Value, End of Period | $10.38 | $10.69 | $10.66 | $10.27 | $10.73 |
Total Return2 | (0.80)% | 2.54% | 6.28% | (1.79)% | 5.57% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.68% | 1.69% | 1.70% | 1.71% | 1.69% |
Net investment income | 2.25% | 2.28% | 2.40% | 2.59% | 2.52% |
Expense waiver/reimbursement3 | 0.01% | 0.00%4 | 0.00% | 0.00% | 0.00%4 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $4,061 | $5,732 | $7,303 | $8,292 | $11,434 |
Portfolio turnover | 14% | 25% | 16% | 8% | 22% |
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 0.005%. |
• | Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan |
• | Shares purchased by or through a 529 Plan |
• | Shares purchased through a Merrill Lynch affiliated investment advisory program |
• | Shares purchased by third-party investment advisors on behalf of their advisory clients through Merrill Lynch's platform |
• | Shares of funds purchased through the Merrill Edge Self-Directed platform |
• | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family) |
• | Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date |
• | Employees and registered representatives of Merrill Lynch or its affiliates and their family members |
• | Directors or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus |
• | Shares purchased from the proceeds of redemptions within the same fund family, provided: (1) the repurchase occurs within 90 days following the redemption; (2) the redemption and purchase occur in the same account; and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement) |
• | Death or disability of the shareholder |
• | Shares sold as part of a systematic withdrawal plan as described in the Fund's prospectus |
• | Return of excess contributions from an IRA Account |
• | Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70 1⁄2 |
• | Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch |
• | Shares acquired through a right of reinstatement |
• | Shares held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to A and C shares only). The CDSC applicable to the converted shares will be waived, and Merrill Lynch will remit to the Fund's Distributor a portion of the waived CDSC. Such portion shall be equal to the number of months remaining on the CDSC period divided by the total number of months of the CDSC period. |
• | Breakpoints as described in this prospectus |
• | Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser's household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets. |
• | Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time |
1. | Statement of Additional Information of Federated New York Municipal Income Fund, dated October 31, 2016. |
2. | Statement of Additional Information of Federated Municipal Bond Fund, Inc., dated July 27, 2017. |
3. | Audited Financial Statements of Federated New York Municipal Income Fund, dated August 31, 2016. |
4. | Audited Financial Statements of Federated Municipal Bond Fund, Inc., dated March 31, 2017 |
5. | Unaudited Financial Statements for Federated New York Municipal Income Fund dated February 28, 2017. |
PROXY TABULATOR
P.O. BOX 9112
FARMINGDALE, NY 11735
To vote by Internet | |
1) Read the Proxy Statement and have the Proxy Card below at hand. | |
2) Go to website www.proxyvote.com | |
3) Follow the instructions provided on the website. | |
To vote by Telephone | |
1) Read the Proxy Statement and have the Proxy Card below at hand. | |
2) Call 1-800-690-6903 | |
3) Follow the instructions. | |
To vote by Mail | |
1) Read the Proxy Statement. | |
2) Check the appropriate box on the Proxy Card below. | |
3) Sign and date the Proxy Card. | |
4) Return the Proxy Card in the envelope provided. | |
If you vote by Telephone or Internet, you do not need to mail your proxy. |
TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: | E32992-S62739 | KEEP THIS PORTION FOR YOUR RECORDS |
DETACH AND RETURN THIS PORTION ONLY |
Proposal 1. To approve or disapprove a proposed Agreement and Plan of Reorganization pursuant to which Federated Municipal Bond Fund, Inc. (FMBDF) would acquire all, or substantially all, of the assets of Federated New York Municipal Income Fund (NYMIF), a portfolio of Federated Municipal Securities Income Trust, in exchange for Class A Shares and Class B Shares of FMBDF to be distributed pro rata by NYMIF to its shareholders of Class A Shares and Class B Shares, respectively, in a complete liquidation and dissolution of NYMIF.
Any such vote in FAVOR or AGAINST the Proposal will authorize the persons named as proxies to vote accordingly in FAVOR or AGAINST at any adjournment of the Special Meeting.
|
For | Against | Abstain |
YOUR VOTE IS IMPORTANT
Please complete, sign and return this card as soon as possible.
Please sign this proxy exactly as your name appears on the books of the Trust. Joint owners should each sign personally. Trustees and other fiduciaries should indicate the capacity in which they sign, and where more than one name appears, a majority must sign. If a corporation, this signature should be that of an authorized officer who should state his or her title.
Signature [PLEASE SIGN WITHIN BOX] | Date | Signature [Joint Owners] | Date |
Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting:
The Notice of Special Meeting of Shareholders and Proxy Statement are available at www.proxyvote.com.
E32993-S62739
Federated New York Municipal Income Fund
A portfolio of Federated Municipal Securities Income Trust
SPECIAL MEETING OF SHAREHOLDERS — November 27, 2017
KNOW ALL PERSONS BY THESE PRESENTS that the undersigned Shareholders of Federated New York Municipal Income Fund, a portfolio of Federated Municipal Securities Income Trust (the “Trust”), hereby revoking any proxy heretofore given, designate and appoint George Magera, Kary Moore, Edward Bartley, Maureen Ferguson, Allison Miller and Erin Dugan, as proxies to act at the Special Meeting of Shareholders (the “Special Meeting”) to be held on November 27, 2017 at 4000 Ericsson Drive, Warrendale, Pennsylvania 15086-7561, at
10:00 a.m. (Eastern Time), and at any adjournment thereof.
The attorneys named will vote the shares represented by this proxy in accordance with the choice made on this ballot. If this proxy is executed and returned in time and no choice is indicated as to an item, this proxy will be voted affirmatively on such matter. Discretionary authority is hereby conferred as to all other matters as may properly come before the Special Meeting or any adjournment thereof and the attorneys named in this proxy will vote on such matters in their best judgment. With respect to any question as to an adjournment or postponement of the Special Meeting, the attorneys named will vote AGAINST such an adjournment those proxies that are required to vote against the Proposals and will vote in FAVOR of such an adjournment all other proxies that they are authorized to vote.
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES OF THE FEDERATED MUNICIPAL SECURITIES INCOME TRUST. THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED BY THE UNDERSIGNED SHAREHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED “FOR” THE PROPOSAL.
FEDERATED NEW YORK MUNI INCOME FUND A SPECIAL MEETING TO BE HELD ON 11/27/17 AT 10:00 A.M. EDT |
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE SHAREHOLDER MEETING TO BE HELD ON 11/27/17 FOR FEDERATED NEW YORK MUNI INCOME FUND A
THE FOLLOWING MATERIAL IS AVAILABLE AT WWW.PROXYVOTE.COM **A** | ||||||
FOR HOLDERS AS OF 09/28/17 *ISSUER CONFIRMATION COPY – INFO ONLY* | THIS SPACE INTENTIONALLY LEFT BLANK | ||||||
PLEASE INDICATE YOUR VOTING | |||||||
1 | 1-0001 | THIS FORM IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. PLEASE DO NOT USE IT FOR VOTING PURPOSES. | INSTRUCTIONS FOR EACH PROPOSAL | ||||
313923401 | |||||||
FOR | AGN | ABS | |||||
1. * - TO APPROVE OR DISAPPROVE A PROPOSED AGREEMENT AND PLAN OF à REORGANIZATION PURSUANT TO WHICH FEDERATED MUNICIPAL BOND FUND, INC. (FMBDF) WOULD ACQUIRE ALL OR SUBSTANTIALLY ALL OF THE ASSETS OF FEDERATED NEW YORK MUNICIPAL INCOME FUND (NYMIF) IN EXCHANGE FOR SHARES OF FMBDF, IN A COMPLETE LIQUIDATION AND DISSOLUTION OF NYMIF. (SEE PROXY STATEMENT FOR FULL PROPOSAL). | FOR-->>> | ☐ | ☐ | ☐ | |||
0030301 | |||||||
*NOTE* SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. | 313923401 | ||||||
PLACE “X” HERE IF YOU PLAN TO ATTEND AND VOTE YOUR SHARES AT THE MEETING | |||||||
Broadridge | |||||||
51 MERCEDES WAY | |||||||
EDGEWOOD NY 11717 | |||||||
HOUSEHOLDING ELECTION |
IMPORTANT NOTICE REGARDING DELIVERY OF SECURITY HOLDER DOCUMENTS (HH) FEDERATED FUNDS ATTN: BETH DELL 1001 LIBERTY AVE PITTSBURGH, PA 15222 | ||||||
Mark “FOR” to enroll this account to receive certain future shareholder communications in a single package per household. Mark “AGAINST” if you do not want to participate. To change your election in the future, call 1-866-540-7095. See accompanying page for more information about this election. (HH) |
|||||||
FOR | AGN | ||||||
☐ | ☐ | ||||||
Page 1 of 2 | |||||||
FEDERATED NEW YORK MUNI INCOME FUND B SPECIAL MEETING TO BE HELD ON 11/27/17 AT 10:00 A.M. EDT |
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE SHAREHOLDER MEETING TO BE HELD ON 11/27/17 FOR FEDERATED NEW YORK MUNI INCOME FUND B
THE FOLLOWING MATERIAL IS AVAILABLE AT WWW.PROXYVOTE.COM **A** | ||||||
FOR HOLDERS AS OF 09/28/17 *ISSUER CONFIRMATION COPY – INFO ONLY* | THIS SPACE INTENTIONALLY LEFT BLANK | ||||||
PLEASE INDICATE YOUR VOTING | |||||||
3 | 1-0001 | THIS FORM IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. PLEASE DO NOT USE IT FOR VOTING PURPOSES. | INSTRUCTIONS FOR EACH PROPOSAL | ||||
313923880 | |||||||
FOR | AGN | ABS | |||||
1. * - TO APPROVE OR DISAPPROVE A PROPOSED AGREEMENT AND PLAN OF à REORGANIZATION PURSUANT TO WHICH FEDERATED MUNICIPAL BOND FUND, INC. (FMBDF) WOULD ACQUIRE ALL OR SUBSTANTIALLY ALL OF THE ASSETS OF FEDERATED NEW YORK MUNICIPAL INCOME FUND (NYMIF) IN EXCHANGE FOR SHARES OF FMBDF, IN A COMPLETE LIQUIDATION AND DISSOLUTION OF NYMIF. (SEE PROXY STATEMENT FOR FULL PROPOSAL). | FOR-->>> | ☐ | ☐ | ☐ | |||
0030301 | |||||||
*NOTE* SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING OR ANY ADJOURNMENT THEREOF. | 313923880 | ||||||
PLACE “X” HERE IF YOU PLAN TO ATTEND AND VOTE YOUR SHARES AT THE MEETING | |||||||
Broadridge | |||||||
51 MERCEDES WAY | |||||||
EDGEWOOD NY 11717 | |||||||
HOUSEHOLDING ELECTION |
IMPORTANT NOTICE REGARDING DELIVERY OF SECURITY HOLDER DOCUMENTS (HH) FEDERATED FUNDS ATTN: BETH DELL 1001 LIBERTY AVE PITTSBURGH, PA 15222 | ||||||
Mark “FOR” to enroll this account to receive certain future shareholder communications in a single package per household. Mark “AGAINST” if you do not want to participate. To change your election in the future, call 1-866-540-7095. See accompanying page for more information about this election. (HH) |
|||||||
FOR | AGN | ||||||
☐ | ☐ | ||||||
Page 1 of 2 | |||||||
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