Federated Intermediate Government Fund, Inc.
Portfolio of Investments
May 31, 2011 (unaudited)
Principal Amount |
Value |
GOVERNMENT AGENCIES 43.6% |
Federal Home Loan Bank System 21.8% |
$3,000,000 | 3.625%, 5/29/2013 | 3,183,290 |
2,500,000 | 1 | 5.000%, 11/17/2017 | 2,890,227 |
TOTAL | 6,073,517 |
Federal Home Loan Mortgage Corporation 16.4% |
2,000,000 | 3.750%, 3/27/2019 | 2,134,902 |
2,250,000 | 2 | 4.500%, 7/15/2013 | 2,434,541 |
TOTAL | 4,569,443 |
Federal National Mortgage Association 5.4% |
1,500,000 | 1.625%, 10/26/2015 | 1,498,412 |
TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $11,790,862) |
12,141,372 |
Mortgage-Backed Securities 14.8% |
Federal Home Loan Mortgage Corporation 14.8% |
2,000,000 | 3 | 3.500%, 6/1/2026 | 2,040,106 |
2,000,000 | 3 | 4.000%, 6/1/2026 | 2,084,178 |
2,808 | 6.500%, 12/1/2015 | 3,012 |
TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $4,145,844) |
4,127,296 |
Collateralized Mortgage Obligations 36.7% |
Federal Home Loan Mortgage Corporation 5.3% |
196,439 | 4 | REMIC 2411 FJ, 0.548%, 12/15/2029 | 195,589 |
1,114,826 | 4 | REMIC 2458 FB, 1.198%, 1/15/2032 | 1,135,511 |
159,112 | 4 | REMIC 2534 FI, 1.098%, 2/15/2032 | 161,526 |
TOTAL | 1,492,626 |
Federal National Mortgage Association 31.4% |
244,032 | 4 | REMIC 1993-220 FA, 0.819%, 11/25/2013 | 245,367 |
1,916,136 | REMIC 1999-51 F, 0.697%, 9/17/2029 | 1,924,841 |
1,209,375 | REMIC 2003-76 CA, 3.750%, 7/25/2033 | 1,256,619 |
1,748,085 | 4 | REMIC 2006-58 FP, 0.494%, 7/25/2036 | 1,740,678 |
1,949,059 | REMIC 2006-85 PF, 0.574%, 9/25/2036 | 1,941,133 |
1,649,045 | 4 | REMIC 370 F21, 0.494%, 5/25/2036 | 1,640,746 |
TOTAL | 8,749,384 |
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $10,217,635) |
10,242,010 |
Corporate Bond 5.5% |
1,500,000 | Citigroup, Inc., 2.250%, 12/10/2012 (IDENTIFIED COST $1,504,689) | 1,542,453 |
U.S. Treasury 11.5% |
U.S. Treasury Note 11.5% |
3,000,000 | 3.250%, 3/31/2017 (IDENTIFIED COST $3,089,378) | 3,209,883 |
Repurchase Agreements 6.6% |
670,000 | Interest in $5,680,000,000 joint repurchase agreement 0.14%, dated 5/31/2011 under which Bank of America, N.A. will repurchase securities provided as collateral for $5,680,022,089 on 6/1/2011. The securities provided as collateral at the end of the period were U.S. Government Agency securities with various maturities to 4/15/2040 and the market value of those underlying securities was $5,795,887,478 (segregated pending settlement of dollar-roll transactions). | 670,000 |
Principal Amount |
Value |
$1,178,000 | Interest in $5,680,000,000 joint repurchase agreement 0.14%, dated 5/31/2011 under which Bank of America, N.A. will repurchase securities provided as collateral for $5,680,022,089 on 6/1/2011. The securities provided as collateral at the end of the period were U.S. Government Agency securities with various maturities to 4/15/2040 and the market value of those underlying securities was $5,795,887,478 (purchased with proceeds from securities lending collateral). | 1,178,000 |
TOTAL REPURCHASE AGREEMENTS (AT COST) | 1,848,000 |
TOTAL INVESTMENTS — 118.7% (IDENTIFIED COST $32,596,408)5 |
33,111,014 |
OTHER ASSETS AND LIABILITIES - NET — (18.7)%6 | (5,218,112) |
TOTAL NET ASSETS — 100% | $27,892,902 |
At May 31, 2011, the Fund had the following outstanding futures contracts:
Description |
Number of Contracts |
Notional Value |
Expiration Date |
Unrealized Appreciation/ (Depreciation) |
7 U.S. Treasury Note 5-Year Long Futures | 12 | $1,429,688 | September 2011 | $15,161 |
7 U.S. Treasury Bond 30-Year Short Futures | 5 | $624,219 | September 2011 | $(5,362) |
NET UNREALIZED APPRECIATION ON FUTURES CONTRACTS | $9,799 |
Net Unrealized Appreciation on Futures Contracts is included in “Other Assets and Liabilities — Net.”
1 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
As of May 31, 2011, securities subject to this type of arrangement and related collateral were as follows: |
Market Value of Securities Loaned |
Market Value of Collateral |
$1,156,091 | $1,178,000 |
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 To Be Announced Securities are subject to dollar-roll transactions. |
4 | All or a portion of these securities are segregated pending settlement of dollar-roll transactions. |
5 | At May 31, 2011, the cost of investments for federal tax purposes was $32,596,408. The net unrealized appreciation of investments for federal tax purposes excluding any unrealized appreciation resulting from futures contracts was $514,606. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $597,354 and net unrealized depreciation from investments for those securities having an excess of cost over value of $82,748. |
6 | Assets, other than investments in securities, less liabilities. A significant portion of this balance is a result of dollar-roll transactions, as well as loans to unaffiliated qualified brokers for securities lending. The Fund receives cash from the broker as collateral for the loaned securities and reinvests the collateral in short-term securities such as repurchase agreements or money market mutual funds. |
7 | Non-income producing security. |
Note: The categories of investments are shown as a percentage of total net assets at May 31, 2011.
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
For securities that are fair valued in accordance with procedures established by and under the general supervision of the Directors, certain factors may be considered such as: the purchase price of the security, information obtained by contacting the issuer, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded and public trading in similar securities of the issuer or comparable issuers.
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.
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:
The Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Directors.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1 — quoted prices in active markets for identical securities, including investment companies with daily net asset values, if applicable. Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost. Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used, as of May 31, 2011, in valuing the Fund's assets carried at fair value:
Valuation Inputs | ||||
Level 1 — Quoted Prices and Investments in Mutual Funds |
Level 2 — Other Significant Observable Inputs |
Level 3 — Significant Unobservable Inputs |
Total | |
Debt Securities: | ||||
Government Agencies | $ — | $12,141,372 | $ — | $12,141,372 |
Mortgage-Backed Securities | — | 4,127,296 | — | 4,127,296 |
Collateralized Mortgage Obligations | — | 10,242,010 | — | 10,242,010 |
Corporate Bond | — | 1,542,453 | — | 1,542,453 |
U.S. Treasury | — | 3,209,883 | — | 3,209,883 |
Repurchase Agreements | — | 1,848,000 | — | 1,848,000 |
TOTAL SECURITIES | $ — | $33,111,014 | $ — | $33,111,014 |
OTHER FINANCIAL INSTRUMENTS* | $9,799 | $ — | $ — | $9,799 |
* | Other financial instruments include futures contracts. |
The following acronym is used throughout this portfolio:
REMIC | — Real Estate Mortgage Investment Conduit |
Registrant
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Federated Intermediate Government Fund, Inc.
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By
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/S/ Richard A. Novak
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Richard A. Novak
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Principal Financial Officer
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Date
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July 19, 2011
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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.
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By
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/S/ J. Christopher Donahue
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J. Christopher Donahue
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Principal Executive Officer
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Date
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July 19, 2011
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By
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/S/ Richard A. Novak
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Richard A. Novak
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Principal Financial Officer
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Date
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July 19, 2011
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1.
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I have reviewed this report on Form N-Q of Federated Intermediate Government Fund, Inc. ("registrant");
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the schedules of investments included in this report, fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
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4.
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The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
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a.
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b.
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
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d.
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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a.
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
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b.
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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1.
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I have reviewed this report on Form N-Q of Federated Intermediate Government Fund, Inc. ("registrant");
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the schedules of investments included in this report, fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
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4.
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The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
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a.
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b.
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
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d.
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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a.
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
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b.
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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