form.htm
FEDERATED
BALANCED ALLOCATION FUND
A
Portfolio of Federated Managed Allocation Portfolios
Class
A Shares
Class
B Shares
Class
C Shares
Supplement
to Prospectus dated January 31, 2008
1. Under
the section entitled “Payments to Financial Intermediaries” please delete the
subsection entitled “Rule 12b-1 Fees” on page 48 in its entirety and replace
with the following:
“RULE
12b-1 FEES
The Fund
has adopted a Rule 12b-1 Plan, which allows it to pay marketing fees of up to
0.05% for Class A Shares and 0.75% for Class B Share and Class C Shares of
average net assets to the Distributor for the sale, distribution, administration
and customer servicing of the Fund’s Shares. When the Distributor receives Rule
12b-1 Fees, it may pay some or all of them to financial intermediaries whose
customers purchase Shares. Because these Shares pay marketing fees on
an ongoing basis, your investment cost may be higher over time than other shares
with different sales charges and marketing fees.”
2. Under
the section entitled “Who Manages the Fund?” please delete the subsection
entitled “Portfolio Management Information for the Underlying Funds” on page 62
relating to “Federated Kaufmann Fund (FKF)” in its entirety and replace with the
following:
“FEDERATED
KAUFMANN FUND (FKF)
Lawrence
Auriana
Lawrence
Auriana has been the Fund’s Portfolio Manager since February 1986. He is Vice
President of the Trust. Mr. Auriana joined Federated in April 2001 as Co-Head of
Investments/Federated Kaufmann. From August 1984 to April 2001, Mr. Auriana was
President and Treasurer of Edgemont Asset Management Corp., and Chairman of the
Board and Portfolio Manager to The Kaufmann Fund, Inc. (predecessor to the
Federated Kaufmann Fund). Mr. Auriana earned a B.S. in Economics from Fordham
University and has been engaged in the securities business since
1965.
Hans
P. Utsch
Hans P.
Utsch has been the Fund’s Portfolio Manager since February 1986. He is Vice
President of the Trust. Mr. Utsch joined Federated in April 2001 as Co-Head of
Investments/Federated Kaufmann. From August 1984 to April 2001, Mr. Utsch was
Chairman of the Board and Secretary of Edgemont Asset Management Corp., and
President and Portfolio Manager to The Kaufmann Fund, Inc. (predecessor to the
Federated Kaufmann Fund). Mr. Utsch graduated from Amherst College and holds an
M.B.A. from Columbia University. He has been engaged in the securities business
since 1962.
Jonathan
Art
Jonathan
Art has been a Portfolio Manager of the Fund since October 2003. Mr. Art focuses
on security selection with particular emphasis in the Technology sector. Mr. Art
was an investment analyst with Edgemont Asset
Management
Corp., Adviser to the Kaufmann Fund (predecessor to the Federated Kaufmann Fund)
from 1995 to 2001. He has been an investment analyst with the Fund’s current
Adviser since April 2001. Mr. Art earned a B.E.S. in Mathematical Sciences from
The John Hopkins University and an M.S. in Management from the Massachusetts
Institute of Technology.
Mark
Bauknight
Mark
Bauknight has been a Portfolio Manager of the Fund since October 2003. Mr.
Bauknight focuses on security selection with particular emphasis in the
Financials sector. Mr. Bauknight was an investment analyst with Edgemont Asset
Management Corp., Adviser to the Kaufmann Fund (predecessor to the Federated
Kaufmann Fund) from 1997 to 2001. He has been an investment analyst with the
Fund’s current Adviser since April 2001. Mr. Bauknight earned a B.A. in
Economics and a B.A. in Political Science from the University of North Carolina
at Chapel Hill and an M.B.A. from the University of Oxford.
Jonathan
E. Gold
Jonathan
E. Gold has been a Portfolio Manager of the Fund since June 2008. Mr. Gold
focuses on security selection with particular emphasis in the international
markets. Mr. Gold joined Federated in November 2004 and has been a Senior
Investment Analyst with the Fund’s adviser since that time. Mr. Gold was a
Managing Director with Amphion Capital (and its predecessors) from December 1996
to November 2004. Prior to 1996, he held positions with James D. Wolfensohn Inc.
and Prudential Realty Group. Mr. Gold earned both his Bachelor of Science and
Masters of Business Administration degrees in Finance from the Leonard N. Stern
School of Business, New York University.
John
Leibee
John
Leibee has been a Portfolio Manager of the Fund since June 2008. Mr. Leibee
focuses on security selection with particular emphasis in the Industrials
sector. Mr. Leibee joined Federated in May 2008 as a Portfolio Manager. He
served as Managing Director, Equity Capital Markets, at Citigroup Global Markets
from June 1983 to June 2005. He also worked at Ospraie Management, LLC from
January 2007 to June 2007. He holds a Bachelor of Science Degree from the
University of Delaware and a Masters of Business Administration degree from Duke
University.
The
Fund’s SAI provides additional information about the Portfolio Managers’
compensation, management of other accounts, and ownership of
securities in the Fund.”
July 22, 2008
Cusip
314212887
Cusip
314212879
Cusip
314212861
38776
(7/08)
FEDERATED
BALANCED ALLOCATION FUND
A
Portfolio of Federated Managed Allocation Portfolios
Class
A Shares
Class
B Shares
Class
C Shares
Supplement
to Statement of Additional Information dated January 31, 2008
Under the
section entitled “Portfolio Manager Information for the Underlying Funds” please
delete the subsection titled “Federated Kaufmann Fund (FKF)” on page 36 in its
entirety and replace with the following:
“Federated
Kaufmann Fund (FKF)
The
following information about the Fund’s portfolio manager is provided as of May
30, 2008.
Additional
Accounts Managed by Portfolio Manager
|
Types
of Accounts Managed by Lawrence Auriana
|
Total
Number of Additional Accounts Managed / Total Assets*
|
|
Registered
Investment Companies
|
4
Funds/$1,902.892 million
|
|
Other
Pooled Investment Vehicles
|
1
Porfolio/$2.475 million
|
|
Other
Accounts
|
0
|
*None of the Accounts has an
advisory fee that is based on the performance of the account.
Dollar
value range of shares owned in the Fund: none
Lawrence
Auriana is paid a fixed base salary and a variable annual
incentive. Base salary is determined within a market competitive
position-specific salary range, based on the portfolio manager’s experience and
performance. The annual incentive amount is determined based on
multiple performance criteria using a Balanced Scorecard
methodology. There are three weighted performance categories in the
Balanced Scorecard. Investment Product Performance (IPP) is the
predominant factor. Of lesser importance are: Leadership and
Client Satisfaction and Service. The total Balanced Scorecard “score”
is applied against an annual incentive opportunity that is competitive in the
market for this portfolio manager role to determine the annual incentive
payment.
The Fund
will gain exposure to mid-cap growth equity securities by investing in another
fund (the “Federated Kaufmann Fund”). Mr. Auriana manages the
Federated Kaufmann fund according to its specific investment
program. Thus, although Mr. Auriana is not responsible for making
investment decisions directly on behalf of the Fund, the mid-cap growth portion
of the Fund’s portfolio may be subject to his management of the Federated
Kaufmann Fund. Mr. Auriana’s IPP is measured on a rolling 1, 3, and 5
calendar year pre-tax gross return basis vs. the Fund's designated peer group of
comparable accounts. Performance periods are adjusted if a portfolio
manager has been managing an account for less than five years; accounts with
less than one-year of performance history under a portfolio manager may be
excluded. As noted above, Mr. Auriana is also the portfolio manager
for other accounts in addition to the Fund. Such other accounts may
have different benchmarks. IPP is calculated with an equal weighting
of each account managed by the portfolio manager. Discretion
may be applied to modify the above based on extenuating
circumstances.
Leadership
is assessed by the Chief Investment Officer in charge of the portfolio manager’s
group.
Client
Satisfaction and Service is assessed by Federated’s senior management based on
the quality, amount and effectiveness of client support, with input from sales
management.
Additional
Accounts Managed by Portfolio Manager
|
Types
of Accounts Managed by Hans Utsch
|
Total
Number of Additional Accounts Managed / Total Assets*
|
|
Registered
Investment Companies
|
4
Funds/$1,902.892 million
|
|
Other
Pooled Investment Vehicles
|
1
Portfolio/$2.475 million
|
|
Other
Accounts
|
0
|
*None of the Accounts has an
advisory fee that is based on the performance of the account.
Dollar
value range of shares owned in the Fund: none
Hans
Utsch is paid a fixed base salary and a variable annual
incentive. Base salary is determined within a market competitive
position-specific salary range, based on the portfolio manager’s experience and
performance. The annual incentive amount is determined based on
multiple performance criteria using a Balanced Scorecard
methodology. There are three weighted performance categories in the
Balanced Scorecard. Investment Product Performance (IPP) is the
predominant factor. Of lesser importance are: Leadership and
Client Satisfaction and Service. The total Balanced Scorecard “score”
is applied against an annual incentive opportunity that is competitive in the
market for this portfolio manager role to determine the annual incentive
payment.
The Fund
will gain exposure to mid-cap growth equity securities by investing in another
fund (the “Federated Kaufmann Fund”). Mr. Utsch manages the Federated
Kaufmann fund according to its specific investment program. Thus,
although Mr. Utsch is not responsible for making investment decisions directly
on behalf of the Fund, the mid-cap growth portion of the Fund’s portfolio may be
subject to his management of the Federated Kaufmann Fund. Mr. Utsch’s
IPP is measured on a rolling 1, 3, and 5 calendar year pre-tax gross return
basis vs. the Fund's designated peer group of comparable
accounts. Performance periods are adjusted if a portfolio manager has
been managing an account for less than five years; accounts with less than
one-year of performance history under a portfolio manager may be
excluded. As noted above, Mr. Utsch is also the portfolio manager for
other accounts in addition to the Fund. Such other accounts may have
different benchmarks. IPP is calculated with an equal weighting of
each account managed by the portfolio manager. Discretion may be
applied to modify the above based on extenuating circumstances.
Leadership
is assessed by the Chief Investment Officer in charge of the portfolio manager’s
group.
Client
Satisfaction and Service is assessed by Federated’s senior management based on
the quality, amount and effectiveness of client support, with input from sales
management.
Additional
Accounts Managed by Portfolio Manager
|
Types
of Accounts Managed by Jonathan Art
|
Total
Number of Additional Accounts Managed / Total Assets*
|
|
Registered
Investment Companies
|
1
fund/$125.572 million
|
|
Other
Pooled Investment Vehicles
|
1
Portfolio/$2.475 million
|
|
Other
Accounts
|
0
|
*None of the Accounts has an
advisory fee that is based on the performance of the account.
Dollar
value range of shares owned in the Fund: none
Jonathan
Art is paid a fixed base salary and a variable annual incentive. Base
salary is determined within a market competitive position-specific salary range,
based on the portfolio manager’s experience and performance. The
annual incentive amount is determined based on multiple performance criteria
using a Balanced Scorecard methodology, and may be paid entirely in cash, or in
a combination of cash and restricted stock of Federated Investors, Inc.
(Federated). There are three weighted performance categories in the
Balanced Scorecard. Investment Product Performance (IPP) is the
predominant factor. Of lesser importance are: Financial Success
and Leadership/Teamwork/Communication. The total Balanced Scorecard
“score” is applied against an annual incentive opportunity that is competitive
in the market for this portfolio manager role to determine the annual incentive
payment.
The Fund
will gain exposure to mid-cap growth equity securities by investing in another
fund (the “Federated Kaufmann Fund”). Mr. Art manages the Federated
Kaufmann fund according to its specific investment program. Thus,
although Mr. Art is not responsible for making investment decisions directly on
behalf of the Fund, the mid-cap growth portion of the Fund’s portfolio may be
subject to his management of the Federated Kaufmann Fund. Mr. Art’s
IPP is measured on a rolling 1, 3, and 5 calendar year pre-tax gross return
basis vs. the Fund's designated peer group of comparable
accounts. Performance periods are adjusted if a portfolio manager has
been managing an account for less than five years; accounts with less than
one-year of performance history under a portfolio manager may be
excluded. As noted above, Mr. Art is also the portfolio manager for
other accounts in addition to the Fund. Such other accounts may have
different benchmarks. Additionally, Mr. Art provides research and
analytical support for other accounts. IPP is calculated with an
equal weighting of each account he manages or for which he provides research and
analytical support. Discretion may be applied to modify the above
based on extenuating circumstances.
Financial
success is assessed by the revenue growth for the accounts managed or supported
and is predicated on the trailing 5 year IPP vs. peer group being at or above
the 50th
percentile.
Leadership/Teamwork/Communication
is assessed by the Chief Investment Officer and Lead Portfolio Managers of the
group.
|
Types
of Accounts Managed by Mark Bauknight
|
Total
Number of Additional Accounts Managed / Total Assets*
|
|
Registered
Investment Companies
|
1
Fund/$125.572 million
|
|
Other
Pooled Investment Vehicles
|
1
Portfolio/$2.475 million
|
|
Other
Accounts
|
0
|
*None of the Accounts has an
advisory fee that is based on the performance of the account.
Dollar
value range of shares owned in the Fund: none
Mark
Bauknight is paid a fixed base salary and a variable annual
incentive. Base salary is determined within a market competitive
position-specific salary range, based on the portfolio manager’s experience and
performance. The annual incentive amount is determined based on
multiple performance criteria using a Balanced Scorecard methodology, and may be
paid entirely in cash, or in a combination of cash and restricted stock of
Federated Investors, Inc. (Federated). There are three weighted
performance categories in the Balanced Scorecard. Investment Product
Performance (IPP) is the predominant factor. Of lesser
importance are: Financial Success and
Leadership/Teamwork/Communication. The total Balanced Scorecard
“score” is applied against an annual incentive opportunity that is competitive
in the market for this portfolio manager role to determine the annual incentive
payment.
The Fund
will gain exposure to mid-cap growth equity securities by investing in another
fund (the “Federated Kaufmann Fund”). Mr. Bauknight manages the
Federated Kaufmann fund according to its specific investment
program. Thus, although Mr. Bauknight is not responsible for making
investment decisions directly on behalf of the Fund, the mid-cap growth portion
of the Fund’s portfolio may be subject to his management of the Federated
Kaufmann Fund. Mr. Bauknight’s IPP is measured on a rolling 1, 3, and
5 calendar year pre-tax gross return basis vs. the Fund's designated peer group
of comparable accounts (e.g., accounts in the same category as established by
Morningstar). Performance periods are adjusted if a portfolio manager
has been managing an account for less than five years; accounts with less than
one-year of performance history under a portfolio manager may be
excluded. As noted above, Mr. Bauknight is also the portfolio manager
for other accounts in addition to the Fund. Such other accounts may
have different benchmarks. Additionally, Mr. Bauknight provides
research and analytical support for other accounts. IPP is calculated
with an equal weighting of each account he manages or for which he provides
research and analytical support. Discretion may be applied to modify
the above based on extenuating circumstances.
Financial
success is assessed by the revenue growth for the accounts managed or supported
and is predicated on the trailing 5 year IPP vs. peer group being at or above
the 50th
percentile.
Leadership/Teamwork/Communication
is assessed by the Chief Investment Officer and Lead Portfolio Managers of the
group.
Additional Accounts Managed by
Portfolio Manager
|
Types
of Accounts Managed by Jonathan Gold
|
Total
Number of Additional Accounts Managed / Total Assets*
|
|
Registered
Investment Companies
|
0
|
|
Other
Pooled Investment Vehicles
|
0
|
|
Other
Accounts
|
0
|
*None of the Accounts has an
advisory fee that is based on the performance of the account.
Dollar
value range of shares owned in the Fund: none
Jonathan
Gold is paid a fixed base salary and a variable annual
incentive. Base salary is determined within a market competitive
position-specific salary range, based on the portfolio manager’s experience and
performance. The annual incentive amount is determined based on
multiple performance criteria using a Balanced Scorecard methodology, and may be
paid entirely in cash, or in a combination of cash and restricted stock of
Federated Investors, Inc. (Federated). There are three weighted
performance categories in the Balanced Scorecard. Investment Product
Performance (IPP) is the predominant factor. Of lesser
importance are: Financial Success and
Leadership/Teamwork/Communication. The total Balanced Scorecard
“score” is applied against an annual incentive opportunity that is competitive
in the market for this portfolio manager role to determine the annual incentive
payment.
The Fund
will gain exposure to mid-cap growth equity securities by investing in another
fund (the “Federated Kaufmann Fund”). Mr. Gold manages the Federated
Kaufmann fund according to its specific investment program. Thus,
although Mr. Gold is not responsible for making investment decisions directly on
behalf of the Fund, the mid-cap growth portion of the Fund’s portfolio may be
subject to his management of the Federated Kaufmann Fund. Mr. Gold’s
IPP is measured on a rolling 1, 3, and 5 calendar year pre-tax gross return
basis vs. the Fund's designated peer group of comparable accounts (e.g.,
accounts in the same category as established by
Morningstar). Performance periods are adjusted if a portfolio manager
has been managing an account for less than five years; accounts with less than
one-year of performance history under a portfolio manager may be excluded. Also,
Mr. Gold provides research and analytical support for other
accounts. IPP is calculated with an equal weighting of each account
he manages or for which he provides research and analytical
support. Discretion may be applied to modify the above based on
extenuating circumstances.
Financial
success is assessed by the revenue growth for the accounts managed or supported
and is predicated on the trailing 5 year IPP vs. peer group being at or above
the 50th
percentile.
Leadership/Teamwork/Communication
is assessed by the Chief Investment Officer and Lead Portfolio Managers of the
group.
Additional Accounts Managed by
Portfolio Manager
|
Types
of Accounts Managed by John Leibee
|
Total
Number of Additional Accounts Managed / Total Assets*
|
|
Registered
Investment Companies
|
0
|
|
Other
Pooled Investment Vehicles
|
0
|
|
Other
Accounts
|
0
|
*None of the Accounts has an
advisory fee that is based on the performance of the account.
Dollar
value range of shares owned in the Fund: none
John
Leibee is paid a fixed base salary and a variable annual
incentive. Base salary is determined within a market competitive
position-specific salary range, based on the portfolio manager’s experience and
performance. The annual incentive amount is determined based on
multiple performance criteria using a Balanced Scorecard methodology, and may be
paid entirely in cash, or in a combination of cash and restricted stock of
Federated Investors, Inc. (Federated). There are three weighted
performance categories in the Balanced Scorecard. Investment Product
Performance (IPP) is the predominant factor. Of lesser
importance are: Financial Success and
Leadership/Teamwork/Communication. The total Balanced Scorecard
“score” is applied against an annual incentive opportunity that is competitive
in the market for this portfolio manager role to determine the annual incentive
payment.
The Fund
will gain exposure to mid-cap growth equity securities by investing in another
fund (the “Federated Kaufmann Fund”). Mr. Leibee manages the
Federated Kaufmann fund according to its specific investment
program. Thus, although Mr. Leibee is not responsible for making
investment decisions directly on behalf of the Fund, the mid-cap growth portion
of the Fund’s portfolio may be subject to his management of the Federated
Kaufmann Fund. Mr. Leibee’s IPP is measured on a rolling 1, 3, and 5
calendar year pre-tax gross return basis vs. the Fund's designated peer group of
comparable accounts (e.g., accounts in the same category as established by
Morningstar). Performance periods are adjusted if a portfolio manager
has been managing an account for less than five years; accounts with less than
one-year of performance history under a portfolio manager may be
excluded. Also, Mr. Leibee provides research and analytical support
for other accounts. IPP is calculated with an equal weighting of each
account he manages or for which he provides research and analytical
support. Discretion may be applied to modify the above based on
extenuating circumstances.
Financial
success is assessed by the revenue growth for the accounts managed or supported
and is predicated on the trailing 5 year IPP vs. peer group being at or above
the 50th
percentile.
Leadership/Teamwork/Communication
is assessed by the Chief Investment Officer and Lead Portfolio Managers of the
group.
As a
general matter, certain conflicts of interest may arise in connection with a
portfolio manager’s management of a fund’s investments, on the one hand, and the
investments of other accounts for which the portfolio manager is responsible, on
the other. For example, it is possible that the various accounts
managed could have different investment strategies that, at times, might
conflict with one another to the possible detriment of the
Fund. Alternatively, to the extent that the same investment
opportunities might be desirable for more than one account, possible conflicts
could arise in determining how to allocate them. Other potential
conflicts might include conflicts created by specific portfolio manager
compensation arrangements, and conflicts relating to selection of brokers or
dealers to execute fund portfolio trades and/or specific uses of commissions
from Fund portfolio trades (for example, research, or “soft
dollars”). The Adviser has adopted policies and procedures and has
structured the portfolio managers’ compensation in a manner reasonably designed
to safeguard the Fund from being negatively affected as a result of any such
potential conflicts.
July 22, 2008
Cusip
314212887
Cusip
314212879
Cusip
314212861
38777 (7/08)