N-Q 1 form.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES 811-6307 (Investment Company Act File Number) Federated Intermediate Government Fund, Inc. _______________________________________________________________ (Exact Name of Registrant as Specified in Charter) Federated Investors Funds 5800 Corporate Drive Pittsburgh, Pennsylvania 15237-7000 (Address of Principal Executive Offices) (412) 288-1900 (Registrant's Telephone Number) John W. McGonigle, Esquire Federated Investors Tower 1001 Liberty Avenue Pittsburgh, Pennsylvania 15222-3779 (Name and Address of Agent for Service) (Notices should be sent to the Agent for Service) Date of Fiscal Year End: 2/29/08 Date of Reporting Period: Quarter ended 11/30/07 ITEM 1. SCHEDULE OF INVESTMENTS FEDERATED INTERMEDIATE GOVERNMENT FUND, INC. PORTFOLIO OF INVESTMENTS November 30, 2007 (unaudited) PRINCIPAL VALUE AMOUNT
GOVERNMENT AGENCIES-28.9% FEDERAL HOME LOAN BANK SYSTEM--22.3% $ 7,500,000 1 5.000%, 9/18/2009 $ 7,659,580 FEDERAL HOME LOAN MORTGAGE CORP.--6.6% 2,250,000 1,2 4.500%, 7/15/2013 2,287,712 TOTAL GOVERNMENT AGENCIES 9,947,292 (IDENTIFIED COST $9,668,658) MORTGAGE-BACKED SECURITIES--42.7% FEDERAL HOME LOAN MORTGAGE CORP. --42.7% 5,984,667 3 5.500%, 4/1/2037 - 1/1/2038 5,990,407 6,000,000 3 6.000%, 1/1/2038 6,087,093 2,518,312 3 6.500%, 12/1/2015 - 1/1/2038 2,585,935 TOTAL MORTGAGE-BACKED SECURITIES 14,663,435 (IDENTIFIED COST $14,396,869) ADJUSTABLE RATE MORTGAGES--0.6% FEDERAL NATIONAL MORTGAGE ASSOCIATION HYBRID ARM--0.6% 199,193 3.250%, 6/1/2033 (IDENTIFIED COST $199,597) 198,850 COLLATERALIZED MORTGAGE OBLIGATIONS--47.1% FEDERAL HOME LOAN MORTGAGE CORP.--4.6% 1,621,743 REMIC 2981 FA, 5.052%, 5/15/2035 1,594,377 FEDERAL NATIONAL MORTGAGE ASSOCIATION--42.5% 4,150,121 4 REMIC 370 F21, 5.083%, 5/25/2036 4,115,315 4,055,485 4 REMIC 2006-58 FP, 5.083%, 7/25/2036 4,033,839 3,715,139 4 REMIC 2006-85 PF, 5.163%, 9/25/2036 3,699,207 2,765,997 4 REMIC 2007-30 QF, 5.073%, 4/25/2037 2,728,321 TOTAL 14,576,682 TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS 16,171,059 (IDENTIFIED COST $16,297,119) REPURCHASE AGREEMENTS-23.8% 3,845,000 Interest in $1,095,000,000 joint repurchase agreement 4.64%, dated 11/30/2007 under which BNP 3,845,000 Paribas Securities Corp. will repurchase U.S. Government Agency securities with various maturities to 11/1/2037 for $1,095,423,400 on 12/3/2007. The market value of the underlying securities at the end of the period was $1,122,501,930. 4,319,000 Interest in $4,000,000,000 joint repurchase agreement 4.64%, dated 11/30/2007 under which ING 4,319,000 Financial Markets LLC will repurchase U.S. Government Agency securities with various maturities to 11/1/2047 for $4,001,546,667 on 12/3/2007. The market value of the underlying securities at the end of the period was $4,082,707,771 (purchased with proceeds from securities lending collateral). TOTAL REPURCHASE AGREEMENTS (AT COST) 8,164,000 TOTAL INVESTMENTS-143.1% 49,144,636 (IDENTIFIED COST $48,726,243)5 OTHER ASSETS AND LIABILITIES - NET-(43.1)% (14,807,765) TOTAL NET ASSETS-100% $ 34,336,871
At November 30, 2007, the Fund had the following outstanding futures contracts: CONTRACTS NUMBER OF NOTIONAL VALUE EXPIRATION DATE UNREALIZED APPRECIATION/ CONTRACTS (DEPRECIATION) 6 U.S. Treasury Notes 5-Year Long Futures 70 $7,707,656 March 2008 $3,578 6U.S. Treasury Notes 2-Year Long Futures 15 $3,151,641 March 2008 $(54) 6U.S. Treasury Bond Short Futures 7 $820,313 March 2008 $1,506 NET UNREALIZED APPRECIATION OF FUTURES CONTRACTS $5,030
1 Certain principal amounts or shares are temporarily on loan to unaffiliated broker/dealers. As of November 30, 2007, securities subject to this type of arrangement and related collateral were as follows: MARKET VALUE OF SECURITIES LOANED MARKET VALUE OF COLLATERAL $4,177,752 $4,319,000 2 Pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding long and short futures contracts. 3 All or a portion of these securities may be subject to dollar-roll transactions. 4 Securities held as collateral for the Fund's outstanding dollar-roll transactions. 5 At November 30, 2007, the cost of investments for federal tax purposes was $48,726,243. The net unrealized appreciation of investments for federal tax purposes excluding any unrealized appreciation resulting from futures contracts was $418,393. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $545,200 and net unrealized depreciation from investments for those securities having an excess of cost over value of $126,807. 6 Non-income producing security. Note: The categories of investments are shown as a percentage of total net assets at November 30, 2007. INVESTMENT VALUATION In calculating its net asset value (NAV), the Fund generally values investments as follows: {circle}Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Directors (the "Directors"). {circle}Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium). {circle}Derivative contracts listed on exchanges are valued at their reported settlement or closing price. {circle}Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Directors. {circle}Shares of other mutual funds are valued based upon their reported NAVs. If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV. FAIR VALUATION AND SIGNIFICANT EVENTS PROCEDURES The Directors have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Directors. The Directors also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include: {circle}With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets; {circle}Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and {circle}Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. The following acronyms are used throughout this portfolio: ARM --Adjustable Rate Mortgage REMIC --Real Estate Mortgage Investment Conduit ITEM 2. CONTROLS AND PROCEDURES (a) The registrant's Principal Executive Officer and Principal Financial Officer have concluded that the registrant's disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a- (2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-Q. (b) There were no changes in the registrant's internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 3. EXHIBITS SIGNATURES PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934 AND THE INVESTMENT COMPANY ACT OF 1940, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY AUTHORIZED. REGISTRANT FEDERATED INTERMEDIATE GOVERNMENT FUND, INC. BY /S/ RICHARD A. NOVAK RICHARD A. NOVAK PRINCIPAL FINANCIAL OFFICER DATE JANUARY 23, 2008 PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934 AND THE INVESTMENT COMPANY ACT OF 1940, THIS REPORT HAS BEEN SIGNED BELOW BY THE FOLLOWING PERSONS ON BEHALF OF THE REGISTRANT AND IN THE CAPACITIES AND ON THE DATES INDICATED. BY /S/ J. CHRISTOPHER DONAHUE J. CHRISTOPHER DONAHUE PRINCIPAL EXECUTIVE OFFICER DATE JANUARY 23, 2008 BY /S/ RICHARD A. NOVAK RICHARD A. NOVAK PRINCIPAL FINANCIAL OFFICER DATE JANUARY 23, 2008