Management's Discussion of Fund Performance (unaudited)

The total return of Federated Total Return Government Bond Fund (the “Fund”), based on net asset value for the 12-month reporting period ended February 28, 2015, was 3.50% for the Institutional Shares and 3.15% for the Service Shares. The 3.50% total return of the Institutional Shares consisted of 1.88% in taxable dividends and 1.62% of price appreciation in the net asset value of the shares. The Barclays Government Bond Index (BGB),¹ the Fund's broad-based securities market index, returned 4.29% for the same period. The total return of the Lipper Intermediate U.S. Government Funds Average (LIUSGFA),² a peer group average for the Fund, was 3.20% for the same period. The Fund's and the LIUSGFA's total returns for the most recently completed fiscal year reflected actual cash flows, transaction costs and other expenses, which were not reflected in the total return of the BGB.

During the reporting period, the Fund's investment strategy focused on: (a) duration;³ and (b) sector allocation. These were the most significant factors affecting the Fund's performance relative to the BGB.

The following discussion will focus on the performance of the Fund's Institutional Shares.

MARKET OVERVIEW

The strength of the U.S. economy was apparent in robust job creation and relatively strong Gross Domestic Product (GDP) growth. The pace of expansion averaged nearly 4% for the last nine months of 2014, and over 3 million jobs were created during the 12-month period. While moderate growth, a lower unemployment rate and cessation of quantitative easing (QE) signaled a move towards less accommodative U.S. monetary policy, central banks across the globe moved aggressively to ease policy.

Prodded by anemic growth and disinflationary forces, the European Central Bank (ECB) took unprecedented action announcing a QE program which will buy 1.1 trillion euros of sovereign debt in an attempt to stimulate growth. Germany's 10-year yield fell to just 0.33% as of period end. Similarly, the Bank of Japan embarked on a new, massive QE program also designed to fight stagnant growth and increase inflation.

Although the U.S. economy appeared to be on a solid growth trajectory, global events overwhelmed domestic fundamentals. Geopolitical developments, weak economic growth, disinflation and the collapse of commodities resulted in a stronger U.S. dollar and robust bid for U.S. Treasury securities, which drove longer maturity yields downward.

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Spread sector performance was mixed relative to similar duration Treasuries. High-yield and investment-grade corporates posted negative excess returns while commercial mortgage-backed securities (CMBS)⁴ and conventional residential mortgage excess returns were positive. Longer duration Treasuries posted the highest levels of return due to the yield decline which was most significant for longer maturities. The two-year U.S. Treasury yield increased 30 basis points while the 10-year yield decreased 65 basis points to 1.99%.⁵

DURATION

Portfolio interest rate sensitivity was consistently below that of the BGB based on an expectation of stronger economic growth and, therefore, higher market yields. Despite the broad U.S. expansion, numerous global factors resulted in strong demand for U.S. Treasury notes and bonds, and yields fell. A portion of this strategy utilized derivatives, specifically Treasury futures.⁶ Treasury futures were sold as part of a policy which lowered the portfolio's effective duration relative to that of the BGB. The negative impact on Fund performance from this interest rate strategy was significant.

Sector Allocation

The portfolio was significantly underweighted to Treasuries in favor of a combination of agency debt, residential and CMBS. While excess returns for residential and commercial mortgages were not significantly greater than that of similar duration Treasury securities, the overall impact was positive. Agency debt slightly underperformed Treasuries during the reporting period. Overall, sector strategy made a small, positive contribution.

1	Please see the footnotes to the line graph under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the BGB.
2	Please see the footnotes to the line graph under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the LIUSGFA.
3	Duration is a measure of a security's price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than other securities of shorter durations.
4	The value of some mortgage-backed securities may be particularly sensitive to changes in prevailing interest rates, and although the securities are generally supported by some form of government or private insurance, there is no assurance that private guarantors or insurers will meet their obligations.
5	Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.
6	The Fund's use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments.

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FUND PERFORMANCE AND GROWTH OF A $10,000 INVESTMENT

The graph below illustrates the hypothetical investment of $10,000¹ in the Federated Total Return Government Bond Fund from February 28, 2005 to February 28, 2015, compared to the Barclays Government Bond Index (BGB)^1,2 and the Lipper Intermediate U.S. Government Funds Average (LIUSGFA).^1,3 The Average Annual Total Return table below shows returns for each class averaged over the stated periods.

Growth of a $10,000 INVESTMENT

Growth of $10,000 as of February 28, 2015

The Fund offers multiple share classes whose performance may be greater than or less than its other share class(es) due to differences in sales charges and expenses.

Average Annual Total Returnsfor the Period Ended 2/28/2015

	1 Year	5 Years	10 Years
Institutional Shares	3.50%	3.17%	4.31%
Service Shares	3.15%	2.82%	3.97%
BGB	4.29%	3.52%	4.40%
LIUSGFA	3.20%	2.71%	3.71%

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Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month-end performance and after-tax returns, visit FederatedInvestors.com or call 1-800-341-7400. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured.

1	The Fund's performance assumes the reinvestment of all dividends and distributions. The BGB and the LIUSGFA have been adjusted to reflect reinvestment of dividends on securities in the index and average.
2	The BGB is a market value weighted index of U.S. government and government agency securities (other than mortgage securities) with maturities of one year or more. The index is not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund's performance. The index is unmanaged, and unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.
3	Lipper figures represent the average of the total returns reported by all mutual funds designated by Lipper, Inc., as falling into the respective category and is not adjusted to reflect any sales charges.

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Portfolio of Investments Summary Table (unaudited)

At February 28, 2015, the Fund's portfolio composition¹ was as follows:

Type of Investment	Percentage of Total Net Assets
U.S. Government Agency Commercial Mortgage-Backed Securities	30.6%
U.S. Treasury Securities	25.8%
U.S. Government Agency Securities	21.1%
U.S. Government Agency Mortgage-Backed Securities²	20.2%
Derivative Contracts^3,4	(0.0)%
Repurchase Agreements—Cash	4.9%
Repurchase Agreements—Collateral⁵	8.9%
Other Assets and Liabilities—Net⁶	(11.5)%
TOTAL	100.0%

1	See the Fund's Prospectus and Statement of Additional Information for a description of the types of securities in which the Fund invests.
2	For purposes of this table, Mortgage-Backed Securities include mortgage-backed securities guaranteed by Government Sponsored Entities (GSEs) and adjustable rate mortgage-backed securities.
3	Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative Contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund's performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract's significance to the portfolio. More complete information regarding the Fund's direct investments in derivative contracts, including unrealized appreciation (depreciation), value and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report.
4	Represents less than 0.1%.
5	Includes repurchase agreements purchased with cash collateral or proceeds received in securities lending and/or dollar-roll transactions, as well as cash covering when-issued and delayed-delivery transactions.
6	Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities.

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Portfolio of Investments

February 28, 2015

Principal Amount			Value
		U.S. TREASURY—25.8%
		U.S. Treasury Bonds—11.3%
$6,500,000		2.750%, 8/15/2042	$6,700,891
1,000,000		3.000%, 11/15/2044	1,084,906
6,000,000		3.375%, 5/15/2044	6,963,563
18,250,000		3.625%, 8/15/2043	22,103,316
21,000,000		4.375%, 2/15/2038 - 5/15/2041	28,315,398
3,000,000		4.750%, 2/15/2041	4,273,456
2,250,000		5.250%, 2/15/2029	3,058,629
		TOTAL	72,500,159
		U.S. Treasury Notes—14.5%
5,000,000		0.500%, 2/28/2017	4,987,500
5,000,000		1.375%, 2/29/2020	4,970,312
9,000,000		1.500%, 11/30/2019	9,005,765
15,000,000	¹	1.625%, 12/31/2019 - 11/15/2022	15,041,815
5,000,000		2.000%, 2/15/2025	5,002,344
18,000,000		2.250%, 4/30/2021	18,540,659
20,000,000	¹	2.500%, 8/15/2023 - 5/15/2024	20,888,176
2,000,000		2.625%, 11/15/2020	2,104,959
10,000,000		2.750%, 2/15/2024	10,654,377
2,000,000	²	5.125%, 5/15/2016	2,113,789
		TOTAL	93,309,696
		TOTAL U.S. TREASURY (IDENTIFIED COST $152,076,649)	165,809,855
		ADJUSTABLE RATE MORTGAGES—0.1%
		Federal Home Loan Mortgage Corporation ARM—0.1%
97,378		2.215%, 7/1/2035	104,257
430,149		2.400%, 11/1/2035	458,685
		TOTAL ADJUSTABLE RATE MORTGAGES (IDENTIFIED COST $525,325)	562,942
		GOVERNMENT AGENCIES—21.1%
		Federal Farm Credit System—0.9%
1,000,000		4.250%, 4/16/2018	1,093,782
2,000,000		5.050%, 8/1/2018	2,251,377
1,000,000		5.375%, 11/10/2020	1,191,493
1,000,000		5.550%, 8/1/2017	1,110,292

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Principal Amount			Value
		GOVERNMENT AGENCIES—continued
		Federal Farm Credit System—continued
$249,000		5.800%, 11/10/2021	$307,764
		TOTAL	5,954,708
		Federal Home Loan Bank System—5.5%
1,000,000		2.125%, 6/10/2022	998,839
4,500,000		2.625%, 12/10/2021	4,662,801
10,000,000		3.625%, 3/12/2021	10,982,948
4,000,000		4.125%, 12/13/2019 - 3/13/2020	4,458,479
1,500,000		4.250%, 3/9/2018	1,638,590
1,000,000		4.750%, 12/16/2016	1,073,056
2,500,000		5.000%, 11/17/2017	2,762,154
8,000,000		5.375%, 5/18/2016	8,474,159
		TOTAL	35,051,026
		Federal Home Loan Mortgage Corporation—4.8%
23,000,000	¹	2.375%, 1/13/2022	23,613,398
7,000,000	¹	2.500%, 5/27/2016	7,181,830
70,000		6.750%, 9/15/2029	104,031
		TOTAL	30,899,259
		Federal National Mortgage Association—5.0%
11,000,000		1.550%, 10/4/2019	10,905,890
6,000,000	¹	1.625%, 1/21/2020	5,998,159
10,000,000	¹	1.875%, 9/18/2018	10,217,520
5,000,000	¹	2.625%, 9/6/2024	5,143,851
		TOTAL	32,265,420
		Tennessee Valley Authority Bonds—4.9%
2,000,000		5.250%, 9/15/2039	2,581,067
26,000,000		5.500%, 7/18/2017	28,706,257
		TOTAL	31,287,324
		TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $129,576,482)	135,457,737
		MORTGAGE-BACKED SECURITIES—9.3%
		Federal Home Loan Mortgage Corporation—0.1%
120,160		4.500%, 11/1/2018	126,488
266,595		5.500%, 11/1/2020	288,313
31,864		6.000%, 8/1/2017	33,465
284		6.500%, 12/1/2015	290
		TOTAL	448,556
		Federal National Mortgage Association—6.5%
21,843,226	³	2.500%, 10/1/2029 - 3/1/2030	22,391,382

Annual Shareholder Report

Principal Amount			Value
		MORTGAGE-BACKED SECURITIES—continued
		Federal National Mortgage Association—continued
$17,000,000	³	3.500%, 3/1/2045	$17,815,468
362,377		5.000%, 10/1/2017 - 1/1/2035	394,721
367,566		5.500%, 2/1/2023 - 6/1/2025	406,333
533,953		6.000%, 2/1/2026 - 1/1/2037	607,664
		TOTAL	41,615,568
		Government National Mortgage Association—0.3%
176,222		6.000%, 1/20/2029 - 3/15/2032	202,337
63,878		6.500%, 10/15/2031	75,198
20,662		7.500%, 10/15/2026 - 10/15/2027	24,603
1,069,465		4.000%, 5/15/2025	1,140,212
387,082		5.000%, 3/15/2023	417,855
484,269		5.500%, 2/15/2023 - 5/15/2038	537,639
		TOTAL	2,397,844
		Government Agency—2.4%
15,158,956	^4,5	FDIC Trust 2013-R1, Class A, 1.150%, 3/25/2033	15,054,967
346,075	^4,5	FDIC Trust 2013-R2, Class A, 1.250%, 3/25/2033	334,644
		TOTAL	15,389,611
		TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $59,755,844)	59,851,579
		COMMERCIAL MORTGAGE-BACKED SECURITIES—30.6%
		Agency Commercial Mortgage-Backed Securities—30.6%
10,450,470		FHLMC REMIC K017 A1, 1.891%, 12/25/2020	10,548,738
6,194,628		FHLMC REMIC KF02 A1, 0.551%, 7/25/2020	6,206,973
7,436,548		FHLMC REMIC KS02 A, 0.551%, 8/25/2023	7,436,548
6,630,301		FHLMC REMIC K714 A1, 2.075%, 12/25/2019	6,751,508
20,500,000		FHLMC REMIC K703 A2, 2.699%, 5/25/2018	21,246,739
7,000,000		FHLMC REMIC KSMC A2, 2.615%, 1/25/2023	7,088,621
13,962,044		FHLMC REMIC K014 A1, 2.788%, 10/25/2020	14,458,895
3,809,738		FHLMC REMIC K029 A1, 2.839%, 10/25/2022	3,965,809
20,000,000		FHLMC REMIC K702 A2, 3.154%, 2/25/2018	20,965,762
15,491,684		FHLMC REMIC K011 A1, 2.917% 8/25/2020	16,102,472
1,000,000		FHLMC REMIC K031 A2, 3.300%, 4/25/2023	1,063,121
2,000,000		FHLMC REMIC K003 A4, 5.053%, 1/25/2019	2,230,926
10,238,254		FHLMC REMIC K010 A1, 3.320% 7/25/2020	10,714,489
17,035,465		FNMA REMIC 2013-M3 ASQ2, 1.083%, 2/25/2016	17,083,333
9,983,147		FNMA REMIC 2012-M1 A1, 1.811%, 10/25/2021	10,018,860
13,163,264		FNMA REMIC 2011-M7 A1, 2.049%, 9/25/2018	13,369,912
9,990,114		FNMA REMIC 2010-M6 A1, 2.210%, 9/25/2020	10,155,639

Annual Shareholder Report

Principal Amount			Value
		COMMERCIAL MORTGAGE-BACKED SECURITIES—continued
		Agency Commercial Mortgage-Backed Securities—continued
$650,000		FNMA REMIC 2012-M13 A2, 2.377%, 5/25/2022	$651,548
16,000,000		FNMA REMIC 2011-M7 A2, 2.578%, 9/25/2018	16,514,712
		TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $193,806,236)	196,574,605
		COLLATERALIZED MORTGAGE OBLIGATIONS—10.8%
		Federal Home Loan Mortgage Corporation—1.2%
104,919		REMIC 2411 FJ, 0.522%, 12/15/2029	104,771
389,303		REMIC 2458 FB, 1.172%, 1/15/2032	397,804
55,500		REMIC 2534 FI, 1.072%, 2/15/2032	56,521
46,024		REMIC 2555 B, 4.250%, 1/15/2018	47,692
4,337,148		REMIC 2601 DA, 4.000%, 4/15/2023	4,596,453
2,963,412		REMIC 3322 FB, 0.562%, 5/15/2037	2,969,266
		TOTAL	8,172,507
		Federal National Mortgage Association—5.3%
3,211		REMIC 1988-16 B, 9.500%, 6/25/2018	3,431
1,340		REMIC 1989-35 G, 9.500%, 7/25/2019	1,466
900,755		REMIC 1999-51 F, 0.672%, 9/17/2029	904,579
26,156		REMIC 2003-16 CB, 4.000%, 2/25/2033	26,838
502,475		REMIC 2006-58 FP, 0.471%, 7/25/2036	503,697
803,268		REMIC 2006-85 PF, 0.551%, 9/25/2036	810,185
1,142,943		REMIC 2007-46 FA, 0.541%, 5/25/2037	1,145,262
1,384,214		REMIC 2008-17 PA, 4.500%, 10/25/2037	1,457,546
2,724,939		REMIC 2009-14 PB, 3.500%, 3/25/2024	2,853,572
13,324,119		REMIC 2012-116 FA, 0.471%, 10/25/2042	13,321,319
12,500,805		REMIC 2012-119 FB, 0.521%, 11/25/2042	12,474,289
367,357		REMIC 370 F21, 0.471%, 6/25/2036	368,120
		TOTAL	33,870,304
		Government National Mortgage Association—4.3%
27,425,189		REMIC 2013-H16 FA, 0.708%, 7/20/2063	27,472,058
		TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $69,396,421)	69,514,869
		REPURCHASE AGREEMENTS—13.8%
31,412,000	⁶	Interest in $795,000,000 joint repurchase agreement 0.08%, dated 2/27/2015 under which Bank of America, N.A. will repurchase securities provided as collateral for $795,005,300 on 3/2/2015. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to 10/25/2044 and the market value of those underlying securities was $818,855,459.	31,412,000

Annual Shareholder Report

Principal Amount			Value
		REPURCHASE AGREEMENTS—continued
$29,059,000		Interest in $795,000,000 joint repurchase agreement 0.08%, dated 2/27/2015 under which Bank of America, N.A. will repurchase securities provided as collateral for $795,005,300 on 3/2/2015. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to 10/25/2044 and the market value of those underlying securities was $818,855,459 (purchased with proceeds from securities lending collateral).	$29,059,000
10,249,000	⁷	Interest in $163,778,000 joint repurchase agreement 0.08%, dated 2/18/2015 under which Barclays Capital, Inc. will repurchase securities provided as collateral for $163,788,191 on 3/18/2015. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to 2/20/2045 and the market value of those underlying securities was $167,058,015.	10,249,000
17,826,000	⁷	Interest in $500,000,000 joint repurchase agreement 0.09%, dated 2/12/2015 under which RBC Capital Market, LLC will repurchase securities provided as collateral for $500,035,000 on 3/12/2015. The securities provided as collateral at the end of the period held with BNY Mellon as tri-party agent, were U.S. Government Agency securities with various maturities to 1/20/2065 and the market value of those underlying securities was $511,430,611.	17,826,000
		TOTAL REPURCHASE AGREEMENTS (AT COST)	88,546,000
		TOTAL INVESTMENTS—111.5% (IDENTIFIED COST $693,682,957)⁸	716,317,587
		OTHER ASSETS AND LIABILITIES - NET—(11.5)%⁹	(73,607,840)
		TOTAL NET ASSETS—100%	$642,709,747

At February 28, 2015, the Fund had the following outstanding futures contracts:

Description	Number of Contracts	Notional Value	Expiration Date	Unrealized Depreciation
¹⁰United States Treasury Note 2-Year Short Futures	85	$18,579,141	June 2015	$(29,134)
¹⁰United States Treasury Ultra Bond Short Futures	25	$4,207,031	June 2015	$(97,630)
UNREALIZED DEPRECIATION ON FUTURES CONTRACTS				$(126,764)

Unrealized Depreciation 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.
2	Pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding short futures contracts.
3	All or a portion of these To Be Announced Securities (TBAs) are subject to dollar-roll transactions.

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4	Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At February 28, 2015, these restricted securities amounted to $15,389,611, which represented 2.4% of total net assets.
5	Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees (the “Trustees”). At February 28, 2015, these liquid restricted securities amounted to $15,389,611, which represented 2.4% of total net assets.
6	All or a portion of this security is segregated pending settlement of dollar-roll transactions.
7	Although the repurchase date is more than seven days after the date of purchase, the Fund has the right to terminate the repurchase agreement at any time with seven-days' notice.
8	The cost of investments for federal tax purposes amounts to $693,791,407.
9	Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. A significant portion of this balance represents loans to unaffiliated qualified brokers for securities lending or is the result of dollar-roll transactions.
10	Non-income-producing security.

Note: The categories of investments are shown as a percentage of total net assets at February 28, 2015.

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.

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.

Annual Shareholder Report

The following is a summary of the inputs used, as of February 28, 2015, in valuing the Fund's assets carried at fair value:

Valuation Inputs
	Level 1— Quoted Prices	Level 2— Other Significant Observable Inputs	Level 3— Significant Unobservable Inputs	Total
Debt Securities:
U.S. Treasury	$—	$165,809,855	$—	$165,809,855
Adjustable Rate Mortgages	—	562,942	—	562,942
Government Agencies	—	135,457,737	—	135,457,737
Mortgage-Backed Securities	—	59,851,579	—	59,851,579
Commercial Mortgage-Backed Securities	—	149,025,502	—	149,025,502
Collateralized Mortgage Obligations	—	117,063,972	—	117,063,972
Repurchase Agreements	—	88,546,000	—	88,546,000
TOTAL SECURITIES	$—	$716,317,587	$—	$716,317,587
OTHER FINANCIAL INSTRUMENTS*	$(126,764)	—	—	$(126,764)

*	Other financial instruments include futures contracts.

The following acronyms are used throughout this portfolio:

ARM	—Adjustable Rate Mortgage
FDIC	—Federal Deposit Insurance Corporation
FHLMC	—Federal Home Loan Mortgage Corporation
FNMA	—Federal National Mortgage Association
GNMA	—Government National Mortgage Association
REMIC	—Real Estate Mortgage Investment Conduit

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Institutional Shares

(For a Share Outstanding Throughout Each Period)

Year Ended February 28 or 29	2015	2014	2013	2012	2011
Net Asset Value, Beginning of Period	$11.04	$11.51	$11.80	$11.27	$11.32
Income From Investment Operations:
Net investment income	0.20	0.20	0.24	0.27	0.30
Net realized and unrealized gain (loss) on investments and futures contracts	0.18	(0.32)	0.04	0.63	0.05
TOTAL FROM INVESTMENT OPERATIONS	0.38	(0.12)	0.28	0.90	0.35
Less Distributions:
Distributions from net investment income	(0.20)	(0.20)	(0.24)	(0.27)	(0.30)
Distributions from net realized gain on investments and futures contracts	(0.02)	(0.15)	(0.33)	(0.10)	(0.10)
TOTAL DISTRIBUTIONS	(0.22)	(0.35)	(0.57)	(0.37)	(0.40)
Net Asset Value, End of Period	$11.20	$11.04	$11.51	$11.80	$11.27
Total Return¹	3.50%	(1.02)%	2.40%	8.08%	3.11%
Ratios to Average Net Assets:
Net expenses	0.31%	0.31%	0.31%	0.28%	0.28%
Net investment income	1.84%	1.77%	1.95%	2.22%	2.60%
Expense waiver/reimbursement²	0.19%	0.18%	0.16%	0.17%	0.17%
Supplemental Data:
Net assets, end of period (000 omitted)	$509,697	$542,747	$864,400	$691,854	$672,907
Portfolio turnover	58%	49%	89%	152%	68%
Portfolio turnover (excluding purchases and sales from dollar-roll transactions)	54%	44%	40%	103%	68%

1	Based on net asset value.
2	This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Financial Highlights–Service Shares

(For a Share Outstanding Throughout Each Period)

Year Ended February 28 or 29	2015	2014	2013	2012	2011
Net Asset Value, Beginning of Period	$11.04	$11.51	$11.80	$11.27	$11.32
Income From Investment Operations:
Net investment income	0.17	0.16	0.20	0.23	0.26
Net realized and unrealized gain (loss) on investments and futures contracts	0.18	(0.32)	0.04	0.63	0.06
TOTAL FROM INVESTMENT OPERATIONS	0.35	(0.16)	0.24	0.86	0.32
Less Distributions:
Distributions from net investment income	(0.17)	(0.16)	(0.20)	(0.23)	(0.27)
Distributions from net realized gain on investments and futures contracts	(0.02)	(0.15)	(0.33)	(0.10)	(0.10)
TOTAL DISTRIBUTIONS	(0.19)	(0.31)	(0.53)	(0.33)	(0.37)
Net Asset Value, End of Period	$11.20	$11.04	$11.51	$11.80	$11.27
Total Return¹	3.15%	(1.36)%	2.05%	7.71%	2.76%
Ratios to Average Net Assets:
Net expenses	0.65%	0.65%	0.65%	0.62%	0.62%
Net investment income	1.49%	1.42%	1.61%	1.74%	2.26%
Expense waiver/reimbursement²	0.34%	0.33%	0.32%	0.33%	0.32%
Supplemental Data:
Net assets, end of period (000 omitted)	$133,013	$138,193	$278,256	$622,581	$158,495
Portfolio turnover	58%	49%	89%	152%	68%
Portfolio turnover (excluding purchases and sales from dollar-roll transactions)	54%	44%	40%	103%	68%

1	Based on net asset value.
2	This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Assets and Liabilities

February 28, 2015

Assets:
Investment in repurchase agreements	$88,546,000
Investment in securities	627,771,587
Total investment in securities, at value including $28,193,719 of securities loaned (identified cost $693,682,957)		$716,317,587
Cash		431
Income receivable		2,250,008
Receivable for shares sold		301,921
TOTAL ASSETS		718,869,947
Liabilities:
Payable for investments purchased	45,699,875
Payable for shares redeemed	1,069,110
Payable for daily variation margin	19,453
Payable for collateral due to broker for securities lending	29,059,000
Income distribution payable	146,709
Payable for Directors'/Trustees' fees (Note 5)	668
Payable for distribution services fee (Note 5)	10,049
Payable for other service fees (Notes 2 and 5)	28,231
Accrued expenses (Note 5)	127,105
TOTAL LIABILITIES		76,160,200
Net assets for 57,390,238 shares outstanding		$642,709,747
Net Assets Consist of:
Paid-in capital		$618,593,069
Net unrealized appreciation of investments and futures contracts		22,507,866
Accumulated net realized gain on investments and futures contracts		1,540,977
Undistributed net investment income		67,835
TOTAL NET ASSETS		$642,709,747
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
$509,697,229 ÷ 45,513,118 shares outstanding, no par value, unlimited shares authorized		$11.20
Service Shares:
$133,012,518 ÷ 11,877,120 shares outstanding, no par value, unlimited shares authorized		$11.20

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Operations

Year Ended February 28, 2015

Investment Income:
Interest (including income on securities loaned of $26,944)			$14,698,113
Expenses:
Investment adviser fee (Note 5)		$2,051,103
Administrative fee (Note 5)		534,717
Custodian fees		32,270
Transfer agent fee		485,210
Directors'/Trustees' fees (Note 5)		10,912
Auditing fees		27,250
Legal fees		12,505
Portfolio accounting fees		155,916
Distribution services fee (Note 5)		338,385
Other service fees (Notes 2 and 5)		333,466
Share registration costs		59,114
Printing and postage		35,891
Miscellaneous (Note 5)		18,303
TOTAL EXPENSES		4,095,042
Waivers (Note 5):
Waiver of investment adviser fee	$(1,270,218)
Waiver of other operating expenses	(211,788)
TOTAL WAIVERS		(1,482,006)
Net expenses			2,613,036
Net investment income			12,085,077
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts:
Net realized gain on investments			8,587,795
Net realized loss on futures contracts			(131,127)
Net change in unrealized appreciation of investments			2,473,989
Net change in unrealized depreciation of futures contracts			(126,764)
Net realized and unrealized gain on investments and futures contracts			10,803,893
Change in net assets resulting from operations			$22,888,970

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Statement of Changes in Net Assets

Year Ended February 28	2015	2014
Increase (Decrease) in Net Assets
Operations:
Net investment income	$12,085,077	$15,103,138
Net realized gain (loss) on investments and futures contracts	8,456,668	(1,692,766)
Net change in unrealized appreciation/depreciation of investments and futures contracts	2,347,225	(27,418,718)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS	22,888,970	(14,008,346)
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares	(10,066,420)	(12,688,953)
Service Shares	(2,020,986)	(2,628,927)
Distributions from net realized gain on investments and futures contracts
Institutional Shares	(957,192)	(10,677,137)
Service Shares	(237,038)	(2,943,065)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS	(13,281,636)	(28,938,082)
Share Transactions:
Proceeds from sale of shares	142,387,574	157,478,351
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Intermediate Government Fund	26,211,166	—
Proceeds from shares issued in connection with the tax-free transfer of assets from Huntington Intermediate Government Income Fund	51,469,300	—
Net asset value of shares issued to shareholders in payment of distributions declared	11,366,342	25,673,789
Cost of shares redeemed	(279,272,099)	(601,921,493)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS	(47,837,717)	(418,769,353)
Change in net assets	(38,230,383)	(461,715,781)
Net Assets:
Beginning of period	680,940,130	1,142,655,911
End of period (including undistributed net investment income of $67,835 and $36,901, respectively)	$642,709,747	$680,940,130

See Notes which are an integral part of the Financial Statements

Annual Shareholder Report

Notes to Financial Statements

February 28, 2015

1. ORGANIZATION

Federated Total Return Government Bond Fund (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified, open-end management investment company. The Trust offers two classes of shares: Institutional Shares and Service Shares. All shares of the Trust have equal rights with respect to voting, except on class-specific matters. The investment objective of the Trust is to pursue total return consistent with current income.

On June 13, 2014, the Fund acquired all of the net assets of Federated Intermediate Government Fund in a tax-free reorganization in exchange for shares of the Fund. The purpose of the transaction was to combine portfolios with comparable investment objectives and strategies. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from Federated Intermediate Government Fund was carried forward to align ongoing reporting of the Fund's realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

For every one share of Federated Intermediate Government Fund, Institutional Shares exchanged, a shareholder received 0.916 shares of the Fund's Institutional Shares.

For every one share of Federated Intermediate Government Fund, Service Shares exchanged, a shareholder received 0.916 shares of the Fund's Service Shares.

The Fund received net assets from the Federated Intermediate Government Fund as the result of the tax-free reorganization as follows:

Shares of the Fund Issued	Federated Intermediate Government Fund Net Assets Received	Unrealized Appreciation¹	Net Assets of the Fund Immediately Prior to Combination	Net Assets of the Fund Immediately After Combination
2,374,195	$26,211,166	$248,252	$702,028,800	$728,239,966

1	Unrealized Appreciation is included in the Federated Intermediate Government Fund Net Assets Received amount shown above.

Assuming the acquisition had been completed on March 1, 2014, the beginning of the annual reporting period of the Fund, the Fund's pro forma results of operations for the year ended February 28, 2015, are as follows:

Net investment income*	$12,169,897
Net realized and unrealized gain on investments	$10,755,935
Net increase in net assets resulting from operations	$22,925,832

*	Net investment income reflects $8,878 of pro forma additional expenses.

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amount of revenue and earnings of the Intermediate Government Income Fund that have been included in the Fund's Statement of Operations as of February 28, 2015.

Annual Shareholder Report

On May 16, 2014, the Fund acquired all of the net assets of Huntington Intermediate Government Income Fund (“Intermediate Government Income Fund”), in a tax-free reorganization in exchange for shares of the Fund. The purpose of the transaction was to combine portfolios with comparable investment objectives and strategies. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from Intermediate Government Income Fund was carried forward to align ongoing reporting of the Fund's realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

For every one share of Intermediate Government Income Fund, Trust Shares exchanged, a shareholder received 0.952 shares of the Fund's Institutional Shares.

For every one share of Intermediate Government Income Fund, Class A Shares exchanged, a shareholder received 0.951 shares of the Fund's Service Shares.

The Fund received net assets from the Intermediate Government Income Fund as the result of the tax-free reorganization as follows:

Shares of the Fund Issued	Intermediate Government Income Fund Net Assets Received	Unrealized Appreciation¹	Net Assets of the Fund Immediately Prior to Combination	Net Assets of the Fund Immediately After Combination
4,645,211	$51,469,300	$2,916,782	$656,026,520	$707,495,820

1	Unrealized Appreciation is included in the Intermediate Government Income Fund Net Assets Received amount shown above.

Net investment income*	$12,474,138
Net realized and unrealized gain on investments	$11,273,336
Net increase in net assets resulting from operations	$23,747,474

*	Net investment income reflects $118,195 of pro forma eliminated expenses.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).

Investment Valuation

In calculating its net asset value (NAV), the Trust generally values investments as follows:

■	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 Trustees.

Annual Shareholder Report

■	Fixed-income securities and repurchase agreements 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), unless the issuer's creditworthiness is impaired or other factors indicate that amortized cost is not an accurate estimate of the investment's fair value, in which case it would be valued in the same manner as a longer-term security.
■	Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs.
■	Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations.
■	Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.
■	For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, certain factors may be considered such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, 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, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.

If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, or if the Trust cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Trust's valuation policies and procedures, the Trust uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Trust could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Trust determines its NAV per share.

Fair Valuation Procedures

The Trustees have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Trustees have appointed a valuation committee (“Valuation Committee”) comprised of officers of the Trust, Federated Investment Management Company (“Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.

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

Annual Shareholder Report

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 Trust normally uses bid evaluations for any U.S. Treasury and Agency securities and mortgage-backed securities. The Trust normally uses mid evaluations for any other types of fixed-income securities and any 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 Trustees.

Repurchase Agreements

The Trust may invest in repurchase agreements for short-term liquidity purposes. It is the policy of the Trust to require the other party to a repurchase agreement to transfer to the Trust's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Trust holds a “securities entitlement” and exercises “control” as those terms are defined in the Uniform Commercial Code. The Trust has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

The insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Trust to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Trust in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Trust may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Trust's Adviser and its affiliates. The Trust will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Repurchase agreements are subject to Master Netting Agreements (MNA) which are agreements between the Trust and its counterparties that provide for the net settlement of all transactions and collateral with the Trust, through a single payment, in the event of default or termination. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities are not net settlement amounts but gross. As indicated above, the cash or securities to be repurchased, as shown on the Portfolio of Investments, exceeds the repurchase price to be paid under the agreement reducing the net settlement amount to zero.

Investment Income, Gains and Losses, Expenses and Distributions

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income are declared daily and paid

Annual Shareholder Report

monthly. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that Service Shares may bear distribution services fees and other service fees unique to that class.

Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Other Service Fees

The Trust may pay other service fees up to 0.25% of the average daily net assets of the Trust's Service Shares to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Trust for other service fees. For the year ended February 28, 2015, other service fees for the Trust were as follows:

	Other Service Fees Incurred
Service Shares	$333,466

Premium and Discount Amortization/ Paydown Gains and Losses

All premiums and discounts on fixed-income securities, other than mortgage-backed securities, are amortized/accreted using the effective-interest-rate method. Gains and losses realized on principal payment of mortgage-backed securities (paydown gains and losses) are classified as part of investment income.

Federal Taxes

It is the Trust's policy to comply with the Subchapter M provision of the Internal Revenue Code (the “Code”) and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the year ended February 28, 2015, the Trust did not have a liability for any uncertain tax positions. The Trust recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of February 28, 2015, tax years 2012 through 2015 remain subject to examination by the Trust's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

When-Issued and Delayed-Delivery Transactions

The Trust may engage in when-issued or delayed-delivery transactions. The Trust records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

The Trust may transact in To Be Announced Securities (TBAs). As with other delayed-delivery transactions, a seller agrees to issue TBAs at a future date. However, the seller does not specify the particular securities to be delivered. Instead, the Trust agrees to accept any security that meets specified terms such as issuer, interest rate and terms of underlying mortgages. The Trust records TBAs on the trade date utilizing information associated with the

Annual Shareholder Report

specified terms of the transaction as opposed to the specific mortgages. TBAs are marked to market daily and begin earning interest on the settlement date. Losses may occur due to the fact that the actual underlying mortgages received may be less favorable than those anticipated by the Trust.

Dollar-Roll Transactions

The Trust engages in dollar-roll transactions in which the Trust sells mortgage-backed securities with a commitment to buy similar (same type, coupon and maturity), but not identical mortgage-backed securities on a future date. Both securities involved are TBA mortgage-backed securities. The Trust treats dollar-roll transactions as purchases and sales. Dollar-rolls are subject to interest rate risks and credit risks.

Restricted Securities

The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities, like other securities, are priced in accordance with procedures established by and under the general supervision of the Trustees.

Futures Contracts

The Trust purchases and sells financial futures contracts to manage duration risk. Upon entering into a financial futures contract with a broker, the Trust is required to deposit in a segregated account a specified amount of cash or U.S. government securities. Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. Daily, the Trust receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Trust recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. There is minimal counterparty risk to the Trust since futures are exchange traded and the exchange's clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

Futures contracts outstanding at period end are listed after the Trust's Portfolio of Investments.

The average notional value of short futures contracts held by the Trust throughout the period was $22,407,831. This is based on amounts held as of each month-end throughout the fiscal period.

Annual Shareholder Report

Securities Lending

The Trust participates in a securities lending program providing for the lending of government securities to qualified brokers. The Trust normally receives cash collateral for securities loaned that is invested in an affiliated money market fund or in short-term securities including repurchase agreements. Collateral is maintained at a minimum level of 100% of the market value of investments loaned, plus interest, if applicable. Earnings on collateral are allocated between the borrower of the security, the securities lending agent, as a fee for its services under the program and the Trust, according to agreed-upon rates.

The securities lending agreement permits the net settlement of all transactions and collateral with the Trust, through a single payment, in the event of default or termination. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities are not net settlement amount but gross. As indicated below, the cash collateral received by the Trust exceeds the market value of the securities loaned reducing the net settlement amount to zero. The chart below identifies the amount of collateral received as well as the market value of securities on loan. Additionally, the securities lending agreement executed by the Trust includes an indemnification clause. This clause stipulates that the borrower will reimburse the Trust for any losses as a result of any failure of the borrower to return equivalent securities to the Trust.

As of February 28, 2015, securities subject to this type of arrangement and related collateral were as follows:

Market Value of Securities Loaned	Market Value of Collateral
$28,193,719	$29,059,000

Additional Disclosure Related to Derivative Instruments

Fair Value of Derivative Instruments
	Liability
	Statement of Assets and Liabilities Location	Fair Value
Derivatives not accounted for as hedging instruments under ASC Topic 815
Interest rate contracts	Payable for daily variation margin	$126,764*

*	Includes cumulative depreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day's variation margin is reported within the Statement of Assets and Liabilities.

The Effect of Derivative Instruments on the Statement of Operations for the Year Ended February 28, 2015

Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
	Futures
Interest rate contracts	$(131,127)

Annual Shareholder Report

Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
	Futures
Interest rate contracts	$(126,764)

Other

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. The Fund applies Investment Company accounting and reporting guidance.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

Year Ended February 28	2015		2014
Institutional Shares:	Shares	Amount	Shares	Amount
Shares sold	10,171,132	$113,091,700	10,959,817	$123,457,551
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Intermediate Government Fund	693,097	7,651,850	—	—
Proceeds from shares issued in connection with the tax-free transfer of assets from Huntington Intermediate Government Income Fund	4,292,356	47,559,636	—	—
Shares issued to shareholders in payment of distributions declared	845,886	9,398,671	1,860,620	20,825,350
Shares redeemed	(19,629,357)	(218,479,481)	(38,761,165)	(431,740,528)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	(3,626,886)	$(40,777,624)	(25,940,728)	$(287,457,627)

Year Ended February 28	2015		2014
Service Shares:	Shares	Amount	Shares	Amount
Shares sold	2,638,661	$29,295,874	3,036,780	$34,020,800
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Intermediate Government Fund	1,681,098	18,559,316	—	—
Proceeds from shares issued in connection with the tax-free transfer of assets from Huntington Intermediate Government Income Fund	352,855	3,909,664	—	—
Shares issued to shareholders in payment of distributions declared	177,042	1,967,671	432,993	4,848,439
Shares redeemed	(5,485,345)	(60,792,618)	(15,125,347)	(170,180,965)
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS	(635,689)	$(7,060,093)	(11,655,574)	$(131,311,726)
NET CHANGE RESULTING FROM TOTAL TRUST SHARE TRANSACTIONS	(4,262,575)	$(47,837,717)	(37,596,302)	$(418,769,353)

Annual Shareholder Report

4. FEDERAL TAX INFORMATION

The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are due to differing treatments for dollar-roll transactions and capital loss carryforwards acquired through merger.

For the year ended February 28, 2015, permanent differences identified and reclassified among the components of net assets were as follows:

Increase (Decrease)
Paid-In Capital	Undistributed Net Investment Income (Loss)	Accumulated Net Realized Gain (Loss)
$151,090	$33,263	$(184,353)

Net investment income (loss), net realized gains (losses) and net assets were not affected by this reclassification.

The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended February 28, 2015 and 2014 was as follows:

	2015	2014
Ordinary income¹	$12,087,406	$17,081,133
Long-term capital gains	$1,194,230	$11,856,949

1	For tax purposes, short-term capital gain distributions are considered ordinary income distributions.

As of February 28, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income²	$1,045,848
Undistributed long-term capital gains	$3,581,934
Net unrealized appreciation	$22,526,180
Straddle loss deferrals	$(3,037,284)

2	For tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings.

The difference between book-basis and tax-basis net unrealized appreciation/depreciation is attributable in part to differing treatments for the deferral of losses on wash sales and income recognition on dollar-roll transactions.

At February 28, 2015, the cost of investments for federal tax purposes was $693,791,407. The net unrealized appreciation of investments for federal tax purposes excluding any unrealized depreciation resulting from futures contracts was $22,526,180. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $23,538,468 and net unrealized depreciation from investments for those securities having an excess of cost over value of $1,012,288.

The Trust used capital loss carryforwards of $151,090 to offset capital gains realized during the year ended February 28, 2015.

As of February 28, 2015 for federal income tax purposes, the Trust had $3,037,284 in straddle loss deferrals.

Annual Shareholder Report

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

The advisory agreement between the Trust and the Adviser provides for an annual fee equal to 0.30% of the Trust's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee. For the year ended February 28, 2015, the Adviser voluntarily waived $1,270,218 of its fee.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Trust with administrative personnel and services. For purposes of determining the appropriate rate breakpoint, “Investment Complex” is defined as all of the Federated Funds subject to a fee under the Administrative Services Agreement. The fee paid to FAS is based on the average daily net assets of the Investment Complex as specified below, plus certain out-of-pocket expenses:

Administrative Fee	Average Daily Net Assets of the Investment Complex
0.150%	on the first $5 billion
0.125%	on the next $5 billion
0.100%	on the next $10 billion
0.075%	on assets in excess of $20 billion

Subject to the terms described in the Expense Limitation note, FAS may voluntarily choose to waive any portion of its fee. For the year ended February 28, 2015, the annualized fee paid to FAS was 0.078% of average daily net assets of the Trust.

Distribution Services Fee

The Trust has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Trust will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Trust's Service Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Trust may incur distribution expenses at 0.25% of average daily net assets, annually, to compensate FSC. Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the year ended February 28, 2015, distribution services fees for the Trust were as follows:

	Distribution Services Fees Incurred	Distribution Services Fees Waived
Service Shares	$338,385	$(211,788)

When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the year ended February 28, 2015, FSC retained $126,598 of fees paid by the Trust.

Other Service Fees

For the year ended February 28, 2015, FSSC received $2,814 of the other service fees disclosed in Note 2.

Annual Shareholder Report

Expense Limitation

The Adviser and certain of its affiliates (which may include FSC, FAS and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding acquired fund fees and expenses, expenses allocated from affiliated partnerships, extraordinary expenses and proxy-related expenses paid by the Trust, if any) paid by the Trust's Institutional Shares and Service Shares (after the voluntary waivers and reimbursements) will not exceed 0.31% and 0.65% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) May 1, 2016; or (b) the date of the Trust's next effective Prospectus. While the Adviser and its applicable 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 Trustees.

Interfund Transactions

During the year ended February 28, 2015, the Trust engaged in sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees, and/or common Officers. These sale transactions complied with Rule 17a-7 under the Act and amounted to $1,037,701.

General

Certain Officers and Trustees of the Trust are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Adviser which in due course are reimbursed by the Trust. Such expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.

6. Investment TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities, short-term obligations and dollar-roll transactions, for the year ended February 28, 2015, were as follows:

Purchases	$17,340,704
Sales	$19,438,557

7. LINE OF CREDIT

The Trust participates in a $100,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate offered to the Trust by PNC Bank at the time of the borrowing. As of February 28, 2015, there were no outstanding loans. During the year ended February 28, 2015, the Trust did not utilize the LOC.

Annual Shareholder Report

Report of Independent Registered Public Accounting Firm

TO THE SHAREHOLDERS and board of trustees OF Federated total return government bond fund:

We have audited the accompanying statement of assets and liabilities of Federated Total Return Government Bond Fund (the “Trust”), including the portfolio of investments, as of February 28, 2015, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Trust's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of February 28, 2015, by correspondence with the custodian or by other appropriate audit procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Federated Total Return Government Bond Fund at February 28, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
April 23, 2015

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Shareholder Expense Example (unaudited)

As a shareholder of the Trust, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Trust expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Trust and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2014 to February 28, 2015.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Trust's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Trust's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Trust with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

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Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

	Beginning Account Value 9/1/2014	Ending Account Value 2/28/2015	Expenses Paid During Period¹
Actual:
Institutional Shares	$1,000	$1,019.70	$1.55
Service Shares	$1,000	$1,017.90	$3.25
Hypothetical (assuming a 5% return before expenses):
Institutional Shares	$1,000	$1,023.26	$1.56
Service Shares	$1,000	$1,021.57	$3.26

1	Expenses are equal to the Trust's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows:

Institutional Shares	0.31%
Service Shares	0.65%

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Board of Trustees and Fund Officers

The Board of Trustees is responsible for managing the Fund's business affairs and for exercising all the Fund's powers except those reserved for the shareholders. The following tables give information about each Trustee and the senior officers of the Fund. Where required, the tables separately list Trustees who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). Unless otherwise noted, the address of each person listed is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA 15222. The address of all Independent Trustees listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2014, the Fund comprised one portfolio(s), and the Federated Fund Family consisted of 40 investment companies (comprising 131 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Trustee oversees all portfolios in the Federated Fund Family and serves for an indefinite term. The Fund's Statement of Additional Information includes additional information about Fund Trustees and is available, without charge and upon request, by calling 1-800-341-7400.

Interested Trustees Background

Name Birth Date Positions Held with Fund Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s)
John F. Donahue* Birth Date: July 28, 1924 Trustee Indefinite Term Began serving: July 1995	Principal Occupations: Director or Trustee of the Federated Fund Family; Chairman and Director, Federated Investors, Inc.; Chairman of the Federated Fund Family's Executive Committee. Previous Positions: Chairman of the Federated Fund Family; Trustee, Federated Investment Management Company; Chairman and Director, Federated Investment Counseling.
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: June 1995	Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Family; Director or Trustee of the Funds in the Federated Fund Family; President, Chief Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd.

*	Family relationships and reasons for “interested” status: John F. Donahue is the father of J. Christopher Donahue; both are “interested” due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries.

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INDEPENDENT Trustees Background

Name Birth Date Positions Held with Fund Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013	Principal Occupations: Director or Trustee of the Federated Fund Family; Chairman and CEO, The Collins Group, Inc. (a private equity firm). Other Directorships Held: Director, KLX Corp. Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director, FleetBoston Financial Corp.; Director and Audit Committee Member, Bank of America Corp. and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital).
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009	Principal Occupations: Director or Trustee of the Federated Fund Family; Associate General Secretary, Diocese of Pittsburgh; Adjunct Professor of Law, Duquesne University School of Law. Other Directorships Held: Director, CONSOL Energy Inc. Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously served as Professor of Law, Duquesne University School of Law and was a member of the Superior Court of Pennsylvania. Judge Lally-Green also holds the positions of: Member, Pennsylvania State Board of Education; Director, Saint Vincent College; Director and Chair, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Our Campaign for the Church Alive!, Inc.; Director, Pennsylvania Bar Institute; and Director, Catholic High Schools of the Diocese of Pittsburgh, Inc. Judge Lally-Green has held the positions of: Director, Auberle; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; and Director Cardinal Wuerl Catholic High School.
Peter E. Madden Birth Date: March 16, 1942 Trustee Indefinite Term Began serving: July 1995	Principal Occupation: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Fund Family; Retired. Other Directorships Held: None. Qualifications: Mr. Madden has served in several business management, mutual fund services and directorship positions throughout his career. Mr. Madden previously served as President, Chief Operating Officer and Director, State Street Bank and Trust Company (custodian bank) and State Street Corporation (financial services). He was Director, VISA USA and VISA International and Chairman and Director, Massachusetts Bankers Association. Mr. Madden served as Director, Depository Trust Corporation and Director, The Boston Stock Exchange. Mr. Madden also served as a Representative to the Commonwealth of Massachusetts General Court.

Annual Shareholder Report

Name Birth Date Positions Held with Fund Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: January 1999	Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Mansfield has served in several banking, business management and educational roles and directorship positions throughout his career. Mr. Mansfield previously served as Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly, Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology).
Thomas M. O'Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: October 2006	Principal Occupations: Director or Trustee, Vice Chair of the Audit Committee of the Federated Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O'Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O'Neill serves as Director, Medicines for Humanity and Director, The Golisano Children's Museum of Naples, Florida. Mr. O'Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber).
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013	Principal Occupations: Director or Trustee of the Federated Fund Family; General Counsel, University of Pittsburgh. Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey serves as Board Member, Epilepsy Foundation of Western Pennsylvania and Board member, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm).

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Name
Birth Date
Positions Held with Fund
Date Service Began

Principal Occupation(s) for Past Five Years,
Other Directorships Held, Previous Position(s) and Qualifications

John S. Walsh
Birth Date: November 28, 1957
Trustee

Indefinite Term
Began serving: January 1999

Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc.

Other Directorships Held: None.

Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors).

OFFICERS

Name Birth Date Positions Held with Fund Date Service Began	Principal Occupation(s) for Past Five Years and Previous Position(s)
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: June 1995	Principal Occupations: Executive Vice President and Secretary of the Federated Fund Family; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc. Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp.
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013	Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Investors, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc.

Annual Shareholder Report

Name Birth Date Positions Held with Fund Date Service Began	Principal Occupation(s) for Past Five Years and Previous Position(s)
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER Officer since: January 2005	Principal Occupations: Mr. Germain is Chief Legal Officer of the Federated Fund Family. He is General Counsel and Vice President, Federated Investors, Inc.; President, Federated Administrative Services and Federated Administrative Services, Inc.; Vice President, Federated Securities Corp.; Secretary, Federated Private Asset Management, Inc.; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc.
Richard B. Fisher Birth Date: May 17, 1923 VICE PRESIDENT Officer since: June 1995	Principal Occupations: Vice Chairman or Vice President of some of the Funds in the Federated Fund Family; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Family; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp.
Brian P. Bouda Birth Date: February 28, 1947 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: August 2004	Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Family; Vice President and Chief Compliance Officer of Federated Investors, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Bouda joined Federated in 1999 and is a member of the American Bar Association and the State Bar Association of Wisconsin. Previous Positions: Served in Senior Management positions with a large regional banking organization.
Robert J. Ostrowski Birth Date: April 26, 1963 Chief Investment Officer Officer since: May 2004	Principal Occupations: Robert J. Ostrowski joined Federated in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated's taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund's Adviser in 2009 and served as a Senior Vice President of the Fund's Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University.
Todd A. Abraham Birth Date: February 10, 1966 VICE PRESIDENT Officer since: August 2005 Portfolio Manager since: February 2003	Principal Occupations: Todd A. Abraham has been the Fund's Portfolio Manager since February 2003. He is Vice President of the Trust with respect to the Fund. He is Vice President of the Trust. Mr. Abraham has been a Senior Portfolio Manager from 2007, Portfolio Manager from 1995 to 2006, a Senior Vice President since 2007 and a Vice President of the Fund's Adviser from 1997 to 2006. Mr. Abraham joined Federated in 1993 as an Investment Analyst and served as Assistant Vice President from 1995 to 1997. Mr. Abraham served as a Portfolio Analyst at Ryland Mortgage Co. from 1992 to 1993. Mr. Abraham has received the Chartered Financial Analyst designation and an M.B.A. in Finance from Loyola College.

Annual Shareholder Report

Evaluation and Approval of Advisory Contract–May 2014

Federated Total Return Government Bond Fund (the “Fund”)

Following a review and recommendation of approval by the Fund's independent trustees, the Fund's Board reviewed and approved at its May 2014 meetings the Fund's investment advisory contract for an additional one-year term. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated Funds' Board had previously appointed a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated fund. The Senior Officer has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent, written evaluation that covered topics discussed below (the “Evaluation”). The Board considered that Evaluation, along with other information, in deciding to approve the advisory contract.

The Board is also familiar with and considered judicial decisions concerning allegedly excessive investment advisory fees, which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser to a fund and its shareholders, including the performance and expenses of the fund and of comparable funds; the Adviser's cost of providing the services, including the profitability to the Adviser of providing advisory services to a fund; the extent to which the Adviser may realize “economies of scale” as a fund grows larger and, if such economies exist, whether they have been shared with a fund and its shareholders or the family of funds; any “fall-out financial benefits” that accrue to the Adviser because of its relationship with a fund (including research services received from brokers that execute fund trades and any fees paid to affiliates of the Adviser for services rendered to a fund); comparative fee structures, including a comparison of fees paid to the Adviser with those paid by similar funds; and the extent of care, conscientiousness and independence with which the Board members perform their duties and their expertise, including whether they are fully informed about all facts the Board deems relevant to its consideration of the Adviser's services and fees. The Board noted that SEC disclosure requirements regarding the basis for the Board's approval of the Fund's advisory contract generally track the factors listed above. Consistent with these judicial decisions and SEC disclosure requirements, the Board also considered management fees charged to

Annual Shareholder Report

institutional and other clients of the Adviser for what might be viewed as like services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, and in connection with its May meetings, the Board requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's Evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional substantial information in connection with the May meeting at which the Board's formal review of the advisory contract occurred. At this May meeting, senior management of the Adviser also met with the independent trustees and their counsel to discuss the materials presented and any other matters thought relevant by the Adviser or the trustees. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, the Board's consideration of the advisory contract included review of the Senior Officer's Evaluation, accompanying data and additional information covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or “peer group” funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial risk assumed by the Adviser in sponsoring the funds; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in

Annual Shareholder Report

the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

While mindful that courts have cautioned against giving such comparisons too much weight, the Board has found the use of comparisons of the Fund's fees and expenses to other mutual funds with comparable investment programs to be relevant. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates and total expense ratios relative to a fund's peers. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because it is believed that they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's investors. The range of their fees and expenses therefore appears to be a relevant indicator of what consumers have found to be reasonable in the precise marketplace in which the Fund competes.

The Board reviewed the contractual advisory fee rate, net advisory fee rate where partially waived and other expenses of the Fund and noted the position of the Fund's fee rates relative to its peers. In this regard, the Board noted that the contractual advisory fee rate was below the median of the relevant peer group and that it was satisfied that the overall expense structure of the Fund remained competitive.

By contrast, the Senior Officer has reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts and sub-adviser services). He concluded that mutual funds and institutional accounts are inherently different products. Those differences include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; and the time spent by portfolio managers and their teams, funds financial services, legal, compliance and risk management in reviewing securities pricing, addressing different administrative responsibilities, addressing different degrees of risk associated with management and a variety of different costs. The Senior Officer did not consider these fee schedules to be determinative in judging the appropriateness of mutual fund advisory fees.

The Fund's ability to deliver competitive performance when compared to its peer group was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund's investment program, which in turn was one of the Board's considerations in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services were such as to warrant continuation of the advisory contract.

Annual Shareholder Report

The Senior Officer reviewed information compiled by Federated, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups may be helpful, though not conclusive, in judging the reasonableness of proposed fees. The Board considered, in evaluating such comparisons, that in some cases individual funds may exhibit significant and unique differences in their objectives and management techniques when compared to other funds within an industry peer group.

For the periods covered by the Evaluation, the Fund's performance for the three-year period was above the median of the relevant peer group, and the Fund's performance fell below the median of the relevant peer group for the one-year and five-year periods. The Board discussed the Fund's performance with the Adviser and recognized the efforts being undertaken by the Adviser. The Board will continue to monitor these efforts and the performance of the Fund in the context of the other factors considered relevant by the Board.

The Board also received financial information about Federated, including information regarding the compensation and benefits Federated derived from its relationships with the Federated funds. This information covered not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator). The information also detailed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate. Moreover, the Board receives regular reporting as to the institution, adjustment or elimination of these voluntary waivers. In addition, following discussions regarding the Senior Officer's May 2013 recommendations, Federated made meaningful reductions to gross advisory fees for several funds. At the Board meeting in May 2014, the Senior Officer proposed, and the Board approved, reductions in the contractual advisory fees of certain other funds.

Federated furnished information, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the Senior Officer to question the precision of the process and to conclude that such reports may be unreliable, since a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a fund and may produce unintended consequences. The allocation information, including the Senior Officer's view that fund-by-fund estimations may be unreliable, was considered in the analysis by the Board.

Annual Shareholder Report

The Board and the Senior Officer also reviewed information compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's Evaluation also discussed the notion of possible realization of “economies of scale” as a fund grows larger. The Board considered in this regard that the Adviser has made significant and long-term investments in areas that support all of the Federated family of funds, such as personnel and processes for the portfolio management, shareholder services, compliance, internal audit, and risk management functions; and systems technology; and that the benefits of these efforts (as well as any economies, should they exist) were likely to be enjoyed by the fund family as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which (as discussed in the Senior Officer's Evaluation) is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as the fund attains a certain size.

The Senior Officer noted that, subject to the comments and recommendations made within his Evaluation, his observations and the information accompanying the Evaluation supported a finding by the Board that the management fees for each of the funds were reasonable. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors discussed above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the advisory contract was appropriate.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangements.

Annual Shareholder Report

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at www.FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on “Form N-Q.” These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information via the link to the Fund and share class name at www.FederatedInvestors.com/FundInformation.

Annual Shareholder Report

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.

Federated Total Return Government Bond Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000

Federated Securities Corp., Distributor

CUSIP 31429A105
CUSIP 31429A204

30214 (4/15)

(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics (the "Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers") that applies to the registrant's Principal Executive Officer and Principal Financial Officer; the registrant's Principal Financial Officer also serves as the Principal Accounting Officer.

(f)(3) The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.

The registrant's Board has determined that each of the following members of the Board's Audit Committee is an “audit committee financial expert,” and is "independent," for purposes of this Item: John T. Collins, Thomas M. O'Neill and John S. Walsh.

(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:

Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $4,802 and $0 respectively. Fiscal year ended 2015- Audit consent fees for N-14 merger documents and travel expenses for attendance at Audit Committee meeting.

Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.

(d) All Other Fees billed to the registrant for the two most recent fiscal years:

Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.

The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor’s independence. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.

Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate its responsibilities to pre-approve services performed by the independent auditor to management.

The Audit Committee has delegated pre-approval authority to its Chairman. The Chairman will report any pre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval authority when the Chairman is unavailable.

The annual Audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee must approve any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.

In addition to the annual Audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other Audit Services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain Audit services, all other Audit services must be specifically pre-approved by the Audit Committee.

Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor, and has pre-approved certain Audit-related services, all other Audit-related services must be specifically pre-approved by the Audit Committee.

The Audit Committee believes that the independent auditor can provide Tax services to the Company such as tax compliance, tax planning and tax advice without impairing the auditor’s independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved certain Tax services, all Tax services involving large and complex transactions must be specifically pre-approved by the Audit Committee.

With respect to the provision of services other than audit, review or attest services the pre-approval requirement is waived if:

The Audit Committee may grant general pre-approval to those permissible non-audit services classified as All Other services that it believes are routine and recurring services, and would not impair the independence of the auditor.

The SEC’s rules and relevant guidance should be consulted to determine the precise definitions of prohibited non-audit services and the applicability of exceptions to certain of the prohibitions.

Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.

Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by both the independent auditor and the Principal Accounting Officer and/or Internal Auditor, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC’s rules on auditor independence.

(e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:

Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.

(h) The registrant’s Audit Committee has considered that the provision of non-audit services that were rendered to the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.

(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

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-CSR.

(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 second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.

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.

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.

Share Class	Ticker
Institutional	FTRGX
Service	FTGSX

Management's Discussion of Fund Performance	1
Portfolio of Investments Summary Table	5
Portfolio of Investments	6
Financial Highlights	13
Statement of Assets and Liabilities	15
Statement of Operations	16
Statement of Changes in Net Assets	17
Notes to Financial Statements	18
Report of Independent Registered Public Accounting Firm	30
Shareholder Expense Example	31
Board of Trustees and Fund Officers	33
Evaluation and Approval of Advisory Contract	38
Voting Proxies on Fund Portfolio Securities	43
Quarterly Portfolio Schedule	43