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    Formulario 485BPOS INSTITUCIONAL FEDERADO
    Tipo de Cambio de Divisas

    Formulario 485BPOS INSTITUCIONAL FEDERADO

    usdgbp_lwn506By usdgbp_lwn506diciembre 28, 2019No hay comentarios311 Mins Read
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    Archivo de la Ley de 1933 No. 33-54445
    Acta de 1940 Archivo No. 811-7193

    Formulario N-1A

    COMISIÓN NACIONAL DEL MERCADO DE VALORES

    Washington, DC 20549

    DECLARACIÓN DE REGISTRO BAJO LA LEY DE VALORES DE 1933
    Enmienda pre-efectiva No.
    Enmienda posterior a la vigencia No. 102
    y / o
    DECLARACIÓN DE REGISTRO BAJO LA LEY DE LA COMPAÑÍA DE INVERSIONES DE 1940
    Enmienda No. 103

    CONFIANZA INSTITUCIONAL FEDERADA

    (Nombre exacto del registrante como se especifica en la Carta)

    Fondos de inversores federados

    4000 Ericsson Drive

    Warrendale, PA 15086-7561

    (Dirección de las oficinas ejecutivas principales)

    (412) 288-1900

    (Número de teléfono del registratario, incluido
    Codigo de AREA)

    Peter J. Germain, Esquire

    Torre de inversores federados

    Pittsburgh, Pennsylvania 15222-3779

    (Nombre y dirección del agente de servicio)

    Se propone que esta presentación sea efectiva (marque la casilla correspondiente):
    X inmediatamente después de la presentación de conformidad con el párrafo (b)
    en conformidad con el párrafo (b)
    60 días después de la presentación de conformidad con el párrafo (a) (1)
    en de conformidad con el párrafo (a) (1)
    75 días después de la presentación de conformidad con el párrafo (a) (2)
    en de conformidad con el párrafo (a) (2) de la Regla 485
    Si corresponde, marque la siguiente casilla:
    Esta enmienda posterior a la vigencia designa una nueva fecha de vigencia para una enmienda posterior a la vigencia presentada anteriormente.

    Folleto

    31 de diciembre de 2019

    Clase de acciones El | Corazón Institucional El | FIHBX R6 El | FIHLX

    Institucional Federado
    Fondo de bonos de alto rendimiento


    Una cartera de federados
    Fideicomiso Institucional

    Una búsqueda de fondos mutuos
    altos ingresos corrientes al invertir principalmente en valores de renta fija corporativos de menor calificación, incluidos valores de deuda emitidos por empresas estadounidenses o extranjeras.

    Como con todos los fondos mutuos,
    La Comisión de Bolsa y Valores (SEC) no aprobó ni desaprobó estos valores ni aprobó la adecuación de este Folleto. Cualquier representación en contrario es un delito penal.

    IMPORTANTE
    AVISO A LOS ACCIONISTAS

    A partir del 1 de enero,
    2021, según lo permitido por las regulaciones adoptadas por la Comisión de Bolsa y Valores, las copias en papel de los informes de accionistas del Fondo ya no se enviarán por correo, a menos que solicite específicamente copias en papel de
    informes del Fondo o de su intermediario financiero, como un corredor de bolsa o banco. En cambio, los informes estarán disponibles en un sitio web, y se le notificará por correo cada vez que se publique un informe y
    provisto de un enlace al sitio web para acceder al informe.

    Si ya elegiste
    reciba informes de los accionistas de forma electrónica, no se verá afectado por este cambio y no necesita tomar ninguna medida. Puede optar por recibir informes de accionistas y otras comunicaciones del Fondo o de su
    intermediario financiero electrónicamente poniéndose en contacto con su intermediario financiero (como un corredor de bolsa o banco); otros accionistas pueden llamar al Fondo al 1-800-341-7400, Opción 4.

    Puedes elegir recibir
    Todos los informes futuros en papel sin cargo. Puede informar al Fondo o a su intermediario financiero que desea continuar recibiendo copias en papel de sus informes de accionistas comunicándose con su intermediario financiero
    (como un corredor de bolsa o banco); otros accionistas pueden llamar al Fondo al 1-800-341-7400, Opción 4. Su elección de recibir informes en papel se aplicará a todos los fondos mantenidos con el complejo del Fondo o su
    intermediario.

    No está asegurado por la FDIC ■ Mayo
    Perder valor ■ Sin garantía bancaria





    Resumen del fondo
    Información

    Alto rendimiento institucional federado
    Fondo de Bonos (el "Fondo")

    RESUMEN DE RIESGO / RETORNO: INVERSIÓN
    OBJETIVO

    los
    El objetivo de inversión del fondo es buscar altos ingresos corrientes.

    RESUMEN DE RIESGO / RETORNO: HONORARIOS Y
    GASTOS

    Esta
    La tabla describe los honorarios y gastos que puede pagar si compra y mantiene las Acciones Institucionales (IS) y las Acciones de Clase R6 (R6) del Fondo. Si compra las Acciones del Fondo a través de un corredor que actúa como agente en representación
    de sus clientes, es posible que deba pagar una comisión a dicho corredor; tales comisiones, si las hay, no se reflejan en el Ejemplo a continuación.

    Honorarios de los accionistas (honorarios pagados directamente de su inversión) ES R6

    Cargo máximo de ventas (carga) impuesto a las compras (como porcentaje del precio de oferta)


    Ninguna Ninguna

    Cargo máximo de ventas diferidas (carga) (como un porcentaje del precio de compra original o de los ingresos por canje, según corresponda)


    Ninguna Ninguna

    Cargo máximo de venta (carga) impuesto a los dividendos reinvertidos (y otras distribuciones) (como porcentaje del precio de oferta)


    Ninguna Ninguna

    Tarifa de canje (como porcentaje del monto canjeado, si corresponde)


    Ninguna Ninguna

    Tarifa de cambio


    Ninguna Ninguna
    Gastos operativos anuales del fondo (gastos que paga cada año como porcentaje del valor de su inversión)

    Comisión de gestión


    0,40% 0,40%

    Tarifa de distribución (12b-1)


    Ninguna Ninguna

    Otros gastos


    0,15% 0,11%

    Gastos operativos totales del fondo anual


    0,55% 0,51%

    Exenciones de tarifas y / o reembolsos de gastos1


    (0.05)% (0.02)%

    Gastos operativos totales del fondo anual después de exenciones de tarifas y / o reembolsos de gastos


    0,50% 0,49%
    1 El Asesor y algunos de sus afiliados por propia iniciativa han acordado renunciar a ciertos montos de sus respectivas tarifas y / o reembolsar los gastos. Total de gastos operativos anuales del fondo (excluyendo
    honorarios y gastos adquiridos del fondo, gastos por intereses, gastos extraordinarios y gastos relacionados con poderes pagados por el Fondo, si corresponde) pagados por la clase IS del Fondo y acciones R6 (después de las exenciones voluntarias y / o
    reembolsos) no excederá del 0,49% y el 0,48% (el "Límite de tarifa"), respectivamente, hasta, pero sin incluir el último de (la "Fecha de terminación"): (a) 1 de enero de 2021; o (b) la fecha de la
    Próximo Folleto efectivo del Fondo. Si bien el Asesor y sus afiliados actualmente no anticipan la terminación o el aumento de estos acuerdos antes de la Fecha de terminación, estos acuerdos solo pueden terminarse
    o el Límite de tarifa aumentó antes de la Fecha de finalización con el acuerdo de la Junta de Fideicomisarios del Fondo.

    Ejemplo

    Esta
    El objetivo de Ejemplo es ayudarlo a comparar el costo de invertir en el Fondo con el costo de invertir en otros fondos mutuos.

    los
    El ejemplo supone que invierte $ 10,000 por los períodos de tiempo indicados y luego canjea todas sus Acciones al final de esos períodos. El ejemplo también supone que su inversión tiene un retorno del 5% cada año y que
    Los gastos operativos son los que se muestran en la tabla anterior y siguen siendo los mismos. Aunque sus costos y retornos reales pueden ser más altos o más bajos, según estos supuestos, sus costos serían:

    Clase de acciones 1 año 3 años 5 años 10 años
    ES $ 56 $ 176 $ 307 $ 689
    R6 $ 52 $ 164 $ 285 $ 640

    Volumen de negocios de cartera

    El Fondo paga los costos de transacción, como las comisiones, cuando compra y vende valores (o "entrega" su cartera). Una tasa de rotación de cartera más alta puede indicar una mayor
    costos de transacción y pueden generar impuestos más altos cuando las Acciones del Fondo se mantienen en una cuenta sujeta a impuestos. Estos costos, que no se reflejan en los Gastos operativos anuales del Fondo o en el Ejemplo, afectan el rendimiento del Fondo.
    Durante el año fiscal más reciente, la tasa de rotación de la cartera del Fondo fue del 26% del valor promedio de su cartera.




    RESUMEN DE RIESGO / RETORNO: INVERSIONES,
    RIESGOS Y RENDIMIENTO

    ¿Cuáles son los principales del fondo?
    Estrategias de inversión?

    los
    El Fondo persigue su objetivo de inversión invirtiendo principalmente en una cartera diversificada de bonos corporativos de alto rendimiento (también conocidos como "bonos basura"), que incluyen títulos de deuda emitidos por EE. UU. O extranjeros
    empresas (incluidos los valores de deuda de mercados emergentes). El asesor de inversiones del Fondo (el "Asesor") selecciona valores que considera que tienen características atractivas de riesgo-rendimiento. El consejero
    El proceso de selección de valores incluye un análisis de la condición financiera del emisor, la fortaleza del negocio y del producto, la posición competitiva y la experiencia en gestión. El Asesor no limita las inversiones del Fondo a
    valores de un rango de vencimiento particular.

    los
    El Fondo puede invertir en contratos de derivados (por ejemplo, contratos de futuros, contratos de opciones y contratos de intercambio) para implementar sus estrategias de inversión como se describe más detalladamente en el Folleto del Fondo. No puede haber
    Garantía de que el uso del Fondo de contratos derivados o instrumentos híbridos funcionará según lo previsto. Las inversiones derivadas realizadas por el Fondo se incluyen dentro de la política del 80% del Fondo (como se describe a continuación) y son
    calculado a valor de mercado.

    los
    El Fondo invertirá sus activos para que al menos el 80% de sus activos netos (más cualquier préstamo para fines de inversión) se invierta en inversiones calificadas por debajo del grado de inversión. El Fondo notificará a los accionistas por adelantado
    de cualquier cambio en su política de inversión que permita al Fondo invertir, en circunstancias normales, menos del 80% de sus activos netos en inversiones calificadas por debajo del grado de inversión.

    ¿Cuáles son los principales riesgos de
    ¿Invertir en el fondo?

    Todos
    los fondos mutuos asumen riesgos de inversión. Por lo tanto, es posible perder dinero invirtiendo en el Fondo. Los factores principales que pueden reducir los rendimientos del Fondo incluyen:

    ■ Riesgo asociado con valores sin grado de inversión. Los valores con calificación inferior al grado de inversión pueden estar sujetos a mayores riesgos de tasa de interés, crédito y liquidez que los valores con grado de inversión. Estos valores se consideran especulativos.
    con respecto a la capacidad del emisor para pagar intereses y pagar el principal.
    ■ Riesgo de crédito del emisor. Es posible que los intereses o el principal de los valores no se paguen a su vencimiento. Los valores sin grado de inversión generalmente tienen un mayor riesgo de incumplimiento que los valores con grado de inversión. Tal
    la falta de pago o incumplimiento puede reducir el valor de las carteras del Fondo, el precio de sus acciones y su rendimiento.
    ■ Riesgo de crédito de contraparte. El riesgo de crédito incluye la posibilidad de que una parte de una transacción que involucre al Fondo no cumpla con sus obligaciones. Esto podría hacer que el Fondo pierda dinero o pierda el beneficio de
    la transacción o evitar que el Fondo venda o compre otros valores para implementar su estrategia de inversión.
    ■ Riesgo relacionado con la economía. El valor de la cartera del Fondo puede disminuir conjuntamente con una caída en el valor general de los mercados en los que invierte el Fondo y / u otros mercados. Económica, política y financiera.
    las condiciones, o tendencias y desarrollos económicos o de la industria, pueden ocasionalmente y por períodos de tiempo variables, causar que el Fondo experimente volatilidad, falta de liquidez, amortizaciones de accionistas u otros posibles
    efectos adversos. Entre otras inversiones, los bonos y préstamos de baja calificación pueden ser particularmente sensibles a los cambios en la economía.
    ■ Riesgo de liquidez. La liquidez de los bonos corporativos individuales varía considerablemente. Los bonos corporativos de baja calificación tienen menos liquidez que los valores de inversión, lo que significa que puede ser más difícil
    vender o comprar un valor a un precio o tiempo favorable.
    ■ Riesgo de tipo de interés. Los precios de los valores de renta fija generalmente caen cuando las tasas de interés aumentan. Cuanto mayor sea la duración de una garantía de renta fija, más susceptible será al riesgo de tasa de interés. Reciente y
    Es probable que los posibles cambios futuros en la política monetaria realizados por los bancos centrales y / o sus gobiernos afecten el nivel de las tasas de interés.
    ■ Riesgo de inversión extranjera. Debido a que el Fondo invierte en valores emitidos por compañías extranjeras y gobiernos nacionales, el precio de las Acciones del Fondo puede verse más afectado por las condiciones económicas y políticas extranjeras,
    políticas tributarias y estándares de contabilidad y auditoría que de otro modo podrían ser el caso.
    ■ Riesgo de cambio. Los tipos de cambio para las monedas fluctúan diariamente. El valor de las inversiones extranjeras del Fondo y el valor de las acciones pueden verse afectados favorable o desfavorablemente por los cambios de moneda.
    tipos de cambio relativos al dólar estadounidense.
    ■ Riesgo relacionado con la eurozona. Varios países de la Unión Europea (UE) han experimentado y pueden seguir experimentando graves dificultades económicas y financieras. Otros países miembros de la UE también pueden caer
    sujeto a tales dificultades. Estos eventos podrían afectar negativamente el valor y la liquidez de las inversiones del Fondo en valores denominados en euros y contratos de derivados, valores de emisores ubicados en la UE o
    con exposición significativa a emisores o países de la UE.
    ■ Riesgo de apalancamiento. El riesgo de apalancamiento se crea cuando una inversión expone al Fondo a un nivel de riesgo que excede el monto invertido.
    ■ Riesgo de invertir en países de mercados emergentes. Los valores emitidos o negociados en mercados emergentes generalmente conllevan mayores riesgos que los valores emitidos o negociados en mercados desarrollados.



    ■ Riesgo de invertir en contratos derivados e instrumentos híbridos. Los contratos derivados y los instrumentos híbridos implican riesgos diferentes o posiblemente mayores que los riesgos asociados con la inversión directa en valores y otros instrumentos tradicionales.
    inversiones. Los problemas de riesgo específicos relacionados con el uso de tales contratos e instrumentos incluyen problemas de valoración e impuestos, un mayor potencial de pérdidas y / o costos para el Fondo, y una posible reducción en las ganancias para
    el fondo. Cada uno de estos temas se describe con mayor detalle en este prospecto.
    ■ Riesgo de pérdida después de la redención. El Fondo también puede invertir en instrumentos de préstamo de financiación del comercio principalmente invirtiendo en otras compañías de inversión (que no están disponibles para inversión general por parte del público) que poseen
    instrumentos, es asesorado por un afiliado del Asesor y está estructurado como un fondo de pago extendido.
    ■ Riesgo tecnológico. El Asesor utiliza diversas tecnologías en la gestión del Fondo, de acuerdo con su objetivo y estrategia de inversión descritos en este Folleto. Por ejemplo, datos de propiedad y de terceros.
    y los sistemas se utilizan para apoyar la toma de decisiones para el Fondo. La imprecisión de datos, el mal funcionamiento del software u otra tecnología, las imprecisiones de programación y circunstancias similares pueden afectar el rendimiento de estos
    sistemas, que pueden afectar negativamente el rendimiento del Fondo.

    los
    Las acciones ofrecidas por este Folleto no son depósitos u obligaciones de ningún banco, no están respaldadas ni garantizadas por ningún banco y no están aseguradas ni garantizadas por el gobierno de EE. UU., El Seguro Federal de Depósitos
    Corporación, la Junta de la Reserva Federal o cualquier otra agencia gubernamental.

    Rendimiento: gráfico de barras y
    Mesa

    Gráfico de barras de riesgo / retorno

    El bar
    El cuadro y la tabla de rendimiento a continuación reflejan los datos históricos de rendimiento del Fondo y están destinados a ayudarlo a analizar los riesgos de inversión del Fondo a la luz de sus rendimientos históricos. El gráfico de barras muestra el
    variabilidad de los rendimientos totales de la clase IS del Fondo año por año calendario. La tabla de retorno total anual promedio muestra los retornos promediado durante los períodos establecidos, e incluye información comparativa de rendimiento. El rendimiento del Fondo fluctuará, y el rendimiento pasado (antes y después de impuestos) no es necesariamente una indicación de resultados futuros. Información de rendimiento actualizada para el Fondo
    está disponible en la sección "Productos" en FederatedInvestors.com o llamando al 1-800-341-7400.


    <! – 40 comienzo de la descripción gráfica:













































    Fondo de bonos de alto rendimiento institucional federado – Clase IS
    2009 49,50%
    2010 14,78%
    2011 5,68%
    2012 15,16%
    2013 7,31%
    2014 3,08%
    2015 -2,29%
    2016 15,09%
    2017 7,16%
    2018 -2,84%

    41 descripción gráfica final ->

    El IS del fondo
    El rendimiento total de la clase para el período de nueve meses desde el 1 de enero de 2019 hasta el 30 de septiembre de 2019 fue del 11.86%.

    Dentro de los períodos mostrados en el
    gráfico de barras, el rendimiento trimestral más alto de la clase IS del Fondo fue del 18,11% (trimestre finalizado el 30 de junio de 2009). Su rendimiento trimestral más bajo fue de (4.97)% (trimestre terminado el 30 de septiembre de 2011).

    Retorno total anual promedio
    Mesa

    los
    La clase R6 del Fondo comenzó a operar el 29 de junio de 2016. Para los períodos anteriores al comienzo de las operaciones de la clase R6 del Fondo, la información de rendimiento que se muestra a continuación es para la clase IS del Fondo. los
    el rendimiento de la clase IS no se ha ajustado para reflejar los gastos aplicables a la clase R6, ya que la clase R6 tiene un índice de gastos más bajo que el índice de gastos de la clase IS. El rendimiento de la clase IS
    se ha ajustado para eliminar cualquier exención voluntaria de los gastos del Fondo relacionados con la clase IS que pueda haber ocurrido durante los períodos anteriores al comienzo de las operaciones de la clase R6, lo que habría causado el
    Los gastos de la clase IS serán más bajos que los gastos brutos de la clase R6. La clase R6 del Fondo tendría rendimientos anuales sustancialmente similares a los de la clase IS porque las acciones se invierten en la misma cartera
    de valores y los rendimientos anuales diferirían solo en la medida en que las clases no tengan los mismos gastos. Además de Devolución antes de impuestos, se muestra Devolución después de impuestos para la clase IS del Fondo
    ilustran el efecto de los impuestos federales en los rendimientos del Fondo. Las declaraciones después de impuestos se muestran solo para la clase IS, y las declaraciones después de impuestos para la clase R6 serán diferentes de las que se muestran para la clase IS. Las declaraciones reales después de impuestos dependen de la situación fiscal personal de cada inversor y es probable que difieran de las mostradas. Las declaraciones después de impuestos se calculan utilizando un conjunto estándar de
    Suposiciones Los rendimientos declarados suponen el más alto histórico federal tasas impositivas de ingresos y ganancias de capital. Estas declaraciones después de impuestos hacen no reflejar el efecto de cualquier aplicable estado y local impuestos. Las declaraciones después de impuestos no son relevantes para los inversores que poseen Acciones a través de un plan 401 (k), una Cuenta de Retiro Individual u otro plan de inversión con ventajas impositivas.




    (Para el
    Período finalizado el 31 de diciembre de 2018)

    1 año 5 años 10 años
    ES:
    Devolución antes de impuestos (2,84)% 3.83% 10,46%
    Devolución después de impuestos sobre distribuciones (5,14)% 1,24% 7,41%
    Devolución después de impuestos sobre distribuciones y venta de acciones de fondos (1.64)% 1,76% 7,08%
    R6:
    Devolución antes de impuestos (2,82)% 3.83% 10,41%
    Bloomberg Barclays Índice corporativo de alto rendimiento del 2% del emisor corporativo de EE. UU.1
    (no refleja ninguna deducción por honorarios, gastos o impuestos)
    (2,08)% 3.84% 11,14%
    Lipper Promedio de fondos de alto rendimiento2 (2,99)% 2,73% 9.19%
    1 El índice limitado de emisor del 2% del alto rendimiento corporativo Bloomberg Barclays de EE. UU. Es una versión restringida por el emisor del índice de alto rendimiento corporativo Bloomberg Barclays de EE. UU. Que mide el
    mercado de bonos corporativos imponibles, de tasa fija y sin grado de inversión denominados en USD. El índice sigue las mismas reglas que el índice sin límite, pero limita la exposición de cada emisor al 2% del valor total de mercado y
    redistribuye cualquier exceso de valor de mercado en todo el índice de forma proporcional.
    2 Las cifras de Lipper representan el promedio de los rendimientos totales informados por todos los fondos mutuos designados por Lipper, Inc., como pertenecientes a la categoría respectiva y
    no ajustado para reflejar los cargos de venta.

    GESTIÓN DE FONDOS

    los
    El asesor de inversiones del Fondo es una empresa federada de gestión de inversiones.

    Mark E.
    Durbiano, CFA, Gerente Senior de Cartera, ha sido el gerente de cartera del Fondo desde su inicio en noviembre de 2002.

    Steven
    J. Wagner, Senior Portfolio Manager, ha sido el administrador de la cartera del Fondo desde diciembre de 2017.

    compra y venta de fondo
    Comparte

    Puedes
    comprar, canjear o intercambiar Acciones del Fondo en cualquier día que la Bolsa de Nueva York esté abierta. Las acciones se pueden comprar a través de una empresa intermediaria financiera que ha suscrito un servicio de venta y / o servicio del Fondo
    acuerdo con el Distribuidor o un afiliado ("Intermediario financiero") o directamente del Fondo, por transferencia bancaria o por cheque. Tenga en cuenta que pueden aplicarse ciertas restricciones de compra. Canjear o intercambiar acciones
    a través de un intermediario financiero o directamente del Fondo por teléfono al 1-800-341-7400 o por correo.

    Clase IS

    los
    El monto mínimo de inversión inicial para las Acciones Institucionales del Fondo es generalmente de $ 1,000,000 y no existe un monto mínimo de inversión posterior. Ciertos tipos de cuentas son elegibles para inversiones mínimas más bajas.
    El monto mínimo de inversión para los Programas de inversión sistemática es de $ 50.

    Clase R6

    Allí
    No se requieren montos mínimos de inversión inicial o posterior. El monto mínimo de inversión para los Programas de inversión sistemática es de $ 50.

    Información sobre los impuestos

    Clase IS

    los
    Las distribuciones de los fondos están sujetas a impuestos como ingresos ordinarios o ganancias de capital, excepto cuando su inversión es a través de un plan 401 (k), una cuenta de jubilación individual u otro plan de inversión con ventajas impositivas.

    Clase R6

    los
    Las distribuciones del fondo están sujetas a impuestos como ingresos ordinarios o ganancias de capital, excepto cuando su inversión es a través de un plan de inversión con ventajas impositivas.

    Pagos a Broker-Dealers y
    Otros intermediarios financieros

    Clase IS

    Si tu
    comprar el Fondo a través de un corredor de bolsa u otro intermediario financiero (como un banco), el Fondo y / o sus compañías relacionadas pueden pagarle al intermediario por la venta de Acciones del Fondo y servicios relacionados. Estas
    los pagos pueden crear un conflicto de intereses al influir en el corredor de bolsa u otro intermediario y su vendedor para recomendar el Fondo sobre otra inversión. Pregúntele a su vendedor o visite su financiero
    sitio web del intermediario para más información.




    Pagos a Broker-Dealers y
    Otros intermediarios financieros

    Clase R6

    Clase
    Las Acciones R6 no realizan ningún pago a los intermediarios financieros, ni de los activos del Fondo ni del asesor de inversiones y sus filiales.

    ¿Cuáles son los fondos?
    Estrategias de inversión?

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    El objetivo de inversión del fondo es buscar altos ingresos corrientes. Si bien no hay garantía de que el Fondo logrará su objetivo de inversión, se esfuerza por lograrlo siguiendo las estrategias y políticas descritas en
    Este Folleto.

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    El fondo proporciona exposición al mercado de bonos corporativos de alto rendimiento. El asesor de inversiones del Fondo (el "Asesor") gestiona activamente la cartera del Fondo buscando obtener los rendimientos potencialmente más altos de
    bonos de alto rendimiento (también conocidos como "bonos basura"), en comparación con los rendimientos de los títulos de alto grado al tratar de minimizar el riesgo de incumplimiento y otros riesgos mediante una cuidadosa selección y diversificación de valores. los
    El Fondo invierte principalmente en bonos nacionales de alto rendimiento, pero puede invertir una parte de su cartera en valores de emisores con sede fuera de los Estados Unidos (incluidos los mercados emergentes). Una descripción de los diferentes
    Los tipos de valores en los que invierte el Fondo, y sus riesgos, siguen inmediatamente la discusión de la estrategia.

    El Asesor selecciona valores que cree que tienen características atractivas de riesgo-rendimiento. Los valores en los que invierte el Fondo tienen altos rendimientos principalmente debido a la mayor rentabilidad del mercado.
    incertidumbre sobre la capacidad del emisor para hacer todos los pagos de intereses y capital requeridos, y por lo tanto sobre los rendimientos que de hecho realizará el Fondo.

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    El asesor intenta seleccionar bonos para inversión del Fondo que ofrezcan altos rendimientos potenciales para los riesgos de incumplimiento asumidos. El proceso de selección de valores del Asesor consiste en un crédito intensivo,
    Análisis fundamental de la empresa emisora. El análisis del Asesor se enfoca en la condición financiera de la empresa emisora ​​junto con el negocio del emisor y la fortaleza del producto, posición competitiva y administración
    pericia. Además, el Asesor considera los factores económicos, financieros y de industria actuales, que pueden afectar al emisor.

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    El asesor intenta minimizar el riesgo de crédito de la cartera del Fondo a través de la diversificación. El Asesor selecciona valores para mantener una amplia diversificación de cartera tanto por empresa como por industria. El asesor no
    alcanzar un vencimiento promedio para la cartera del Fondo.

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    El Fondo puede usar contratos derivados y / o instrumentos híbridos para implementar elementos de su estrategia de inversión. Por ejemplo, el Fondo puede usar contratos derivados o instrumentos híbridos para aumentar o disminuir la
    exposición de la cartera a las inversiones subyacentes al instrumento derivado o híbrido en un intento de beneficiarse de los cambios en el valor de las inversiones subyacentes. Además, a modo de ejemplo, el Fondo
    puede usar contratos derivados en un intento de:

    ■ aumentar o disminuir la duración efectiva de la cartera del Fondo;
    ■ obtener primas de la venta de contratos de derivados;
    ■ obtener ganancias de negociar un contrato de derivados; o
    ■ cobertura contra posibles pérdidas.

    Allí
    no puede garantizarse que el uso del Fondo de contratos derivados o instrumentos híbridos funcionará según lo previsto. Las inversiones derivadas realizadas por el Fondo se incluyen dentro de la política del 80% del Fondo (como se describe a continuación) y
    se calculan a valor de mercado.

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    El Fondo invertirá sus activos para que al menos el 80% de sus activos netos (más cualquier préstamo para fines de inversión) se invierta en inversiones calificadas por debajo del grado de inversión. El Fondo notificará a los accionistas por adelantado
    de cualquier cambio en su política de inversión que permita al Fondo invertir, en circunstancias normales, menos del 80% de sus activos netos en inversiones calificadas por debajo del grado de inversión.

    INVERSIONES TEMPORALES

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    El Fondo puede apartarse temporalmente de sus principales estrategias de inversión invirtiendo sus activos en títulos de deuda a corto plazo y obligaciones similares o manteniendo efectivo. Puede hacer esto en respuesta a inusuales
    circunstancias, tales como: condiciones adversas de mercado, económicas u otras (por ejemplo, para ayudar a evitar pérdidas potenciales, o durante los períodos en que hay una escasez de valores apropiados); para mantener la liquidez para cumplir
    amortizaciones de accionistas; o para acomodar entradas de efectivo. Es posible que tales inversiones afecten los rendimientos de inversión del Fondo y / o la capacidad de lograr los objetivos de inversión del Fondo.

    ¿Cuáles son los fondos?
    Principales inversiones?

    los
    A continuación se proporciona información general sobre las principales inversiones del Fondo. La Declaración de información adicional (SAI) del Fondo proporciona información sobre las inversiones no principales del Fondo y puede proporcionar
    Información adicional sobre las principales inversiones del Fondo.




    Valores de renta fija

    Los valores de renta fija pagan intereses, dividendos o distribuciones a una tasa específica. La tasa puede ser un porcentaje fijo del principal o puede ajustarse periódicamente. Además, el emisor de una renta fija
    la garantía debe pagar el monto principal de la garantía, normalmente dentro de un tiempo específico. Los valores de renta fija proporcionan ingresos más regulares que los valores de renta variable. Sin embargo, los rendimientos de los valores de renta fija
    son limitados y normalmente no aumentan con las ganancias del emisor. Esto limita la apreciación potencial de los valores de renta fija en comparación con los valores de renta variable.

    UN
    El rendimiento de la seguridad mide el ingreso anual obtenido de una seguridad como un porcentaje de su precio. El rendimiento de un valor aumentará o disminuirá dependiendo de si cuesta menos (un "descuento") o más (un
    "Prima") que el monto principal. Si el emisor puede canjear el valor antes de su vencimiento programado, el precio y el rendimiento de un valor de descuento o prima pueden cambiar en función de la probabilidad de un
    Redención temprana. Los valores con mayores riesgos generalmente tienen mayores rendimientos.

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    A continuación se describen los valores de renta fija en los que el Fondo invierte principalmente:

    Acciones preferidas

    Las acciones preferidas tienen derecho a recibir dividendos o distribuciones específicos antes de que el emisor realice pagos sobre sus acciones comunes. Algunas acciones preferentes también participan en dividendos y distribuciones pagados en
    acciones comunes Las acciones preferidas también pueden permitir al emisor canjear las acciones. El Fondo también puede tratar dichas acciones preferentes rescatables como una garantía de renta fija.

    Valores de deuda corporativa (tipo A
    de seguridad de renta fija)

    Los títulos de deuda corporativos son títulos de renta fija emitidos por empresas. Las notas, bonos, obligaciones y papel comercial son los tipos más frecuentes de títulos de deuda corporativos. El Fondo también puede comprar
    participaciones en préstamos bancarios a empresas. Los riesgos crediticios de los títulos de deuda corporativos varían ampliamente entre los emisores.

    En
    Además, el riesgo de crédito de la garantía de la deuda del emisor puede variar en función de su prioridad de reembolso. Por ejemplo, los títulos de deuda de mayor rango ("senior") tienen mayor prioridad que los de menor rango
    ("Subordinados") valores. Esto significa que el emisor podría no realizar pagos en valores subordinados mientras continúa realizando pagos en valores senior. Además, en caso de quiebra,
    los tenedores de valores senior pueden recibir montos pagaderos a los tenedores de valores subordinados. Algunos valores subordinados, como los pagarés preferentes y los títulos de capital, también permiten al emisor
    diferir los pagos bajo ciertas circunstancias. Por ejemplo, las compañías de seguros emiten valores conocidos como bonos excedentes que permiten a la compañía de seguros diferir cualquier pago que reduzca su capital por debajo de
    los requisitos reglamentarios.

    Ingreso fijo de menor calificación
    Valores

    Los valores de renta fija de menor calificación son valores clasificados por debajo del grado de inversión (es decir, BB o inferior) por una organización de calificación estadística (NRSRO) reconocida a nivel nacional. No hay una calificación mínima aceptable para un
    valores que el Fondo comprará o mantendrá y el Fondo podrá comprar o mantener valores no calificados y valores cuyos emisores están en incumplimiento.

    Valores de cupón cero (un tipo de
    Seguridad de Renta Fija)

    Los valores de cupón cero no pagan intereses o capital hasta el vencimiento final, a diferencia de los valores de deuda que proporcionan pagos periódicos de intereses (denominado pago de cupón). Los inversores compran valores de cupón cero
    a un precio inferior al monto pagadero al vencimiento. La diferencia entre el precio de compra y el monto pagado al vencimiento representa intereses sobre la garantía de cupón cero. Los inversores deben esperar hasta el vencimiento para recibir
    interés y capital, lo que aumenta la tasa de interés y los riesgos crediticios de un valor de cupón cero.

    Allí
    Hay muchas formas de valores de cupón cero. Algunos se emiten con descuento y se denominan bonos de cupón cero o bonos de apreciación de capital. Otros se crean a partir de bonos que generan intereses separando el derecho a
    recibir los pagos de cupones del bono del derecho a recibir el principal del bono que vence al vencimiento, un proceso conocido como eliminación de cupones. Además, algunos valores le dan al emisor la opción de entregar más
    valores en lugar de pagos de intereses en efectivo, aumentando así la cantidad pagadera al vencimiento. Estos se conocen como pago en especie, valores PIK o valores de alternancia.

    Instrumentos de demanda (un tipo de
    Seguridad de la deuda corporativa)

    Demanda
    Los instrumentos son valores de deuda corporativa que requieren que el emisor o un tercero, como un concesionario o banco (el "Proveedor de Demanda"), recompren el valor por su valor nominal a pedido. Alguna demanda
    los instrumentos son "condicionales", de modo que la ocurrencia de ciertas condiciones libera al Proveedor de la Demanda de su obligación de recomprar la garantía. Otros instrumentos de demanda son
    "Incondicional", de modo que no existan condiciones bajo las cuales la obligación del Proveedor de Demanda de recomprar la garantía pueda terminar. El Fondo trata los instrumentos de demanda como valores a corto plazo, incluso
    aunque su vencimiento declarado puede extenderse más allá de un año.




    Valores convertibles (A
    Seguridad de Renta Fija)

    Los valores convertibles son valores de renta fija que el Fondo tiene la opción de cambiar por valores de renta variable a un precio de conversión específico. La opción permite al Fondo obtener rendimientos adicionales si el
    El precio de mercado de los valores de renta variable supera el precio de conversión. Por ejemplo, el Fondo puede mantener valores de renta fija que sean convertibles en acciones ordinarias a un precio de conversión de $ 10 por acción. Si
    el valor de mercado de las acciones ordinarias alcanzó los $ 12, el Fondo podría obtener $ 2 adicionales por acción mediante la conversión de sus valores de renta fija.

    Los valores convertibles tienen rendimientos más bajos que los valores de renta fija comparables. Además, en el momento en que se emite un valor convertible, el precio de conversión excede el valor de mercado del patrimonio subyacente
    valores. Thus, convertible securities may provide lower returns than non-convertible, fixed-income securities or equity securities depending upon changes in the price of the underlying equity securities. However,
    convertible securities permit the Fund to realize some of the potential appreciation of the underlying equity securities with less risk of losing its initial investment.

    To the
    extent the Fund invests in convertible securities, it typically invests in securities that can be exchanged for instruments that are publically traded or listed on a centralized market or stock exchange. The Fund may
    receive securities not publically traded or listed on a centralized market or stock exchange in connection with bankruptcies, restructurings, or other unusual circumstances.

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    Fund treats convertible securities as fixed-income securities for purposes of its investment policies and limitations, because of their unique characteristics.

    FOREIGN SECURITIES

    Foreign
    securities are securities of issuers based outside the United States. To the extent a Fund invests in securities included in its applicable broad-based securities market index, the Fund may consider an issuer to be
    based outside the United States if the applicable index classifies the issuer as based outside the United States. Accordingly, the Fund may consider an issuer to be based outside the United States if the issuer
    satisfies at least one, but not necessarily all, of the following:

    ■  it is organized under the laws of, or has its principal office located in, another country;
    ■  the principal trading market for its securities is in another country;
    ■  it (directly or through its consolidated subsidiaries) derived in its most current fiscal year at least 50% of its total assets, capitalization, gross revenue or profit from goods produced, services
    performed or sales made in another country; o
    ■  it is classified by an applicable index as based outside the United States.

    While
    the Fund typically invests in U.S. dollar denominated foreign securities, the Fund may also invest in foreign securities that are denominated in foreign currencies Along with the risks normally associated with
    domestic securities of the same type, foreign securities are subject to currency risks and risks of foreign investing. Trading in certain foreign markets is also subject to liquidity risks.

    Foreign Exchange Contracts

    En
    order to convert U.S. dollars into the currency needed to buy a foreign security, or to convert foreign currency received from the sale of a foreign security into U.S. dollars, or to decrease or eliminate the Fund's
    expo­sure to foreign currencies in which a portfolio security is denominated, the Fund may enter into spot currency trades. In a spot trade, the Fund agrees to exchange one currency for another at the current
    exchange rate. The Fund may also enter into derivative contracts in which a foreign currency is an underlying asset. The exchange rate for currency derivative contracts may be higher or lower than the spot exchange
    rate. Use of these derivative contracts may increase or decrease the Fund's exposure to currency risks.

    Derivative Contracts

    Derivative contracts are financial instruments that require payments based upon changes in the values of designated securities, commodities, currencies, indices, or other assets or instruments including other
    derivative contracts, (each a “Reference Instrument” and collectively, “Reference Instruments”). Each party to a derivative contract may sometimes be referred to as a counterparty. Algunos
    derivative contracts require payments relating to an actual, future trade involving the Reference Instrument. These types of derivatives are frequently referred to as “physically settled” derivatives.
    Other derivative contracts require payments relating to the income or returns from, or changes in the market value of, a Reference Instrument. These types of derivatives are known as “cash-settled”
    derivatives, since they require cash payments in lieu of delivery of the Reference Instrument.




    Many
    derivative contracts are traded on securities or commodities exchanges. In this case, the exchange sets all the terms of the contract except for the price. Investors make payments due under their contracts through the
    exchange. Most exchanges require investors to maintain margin accounts through their brokers to cover their potential obligations to the exchange. Parties to the contract make (or collect) daily payments to the margin
    accounts to reflect losses (or gains) in the value of their contracts. This protects investors against potential defaults by the other party to the contract. Trading contracts on an exchange also allows investors to
    close out their contracts by entering into offsetting contracts.

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    Fund may also trade derivative contracts over-the-counter (OTC) in transactions negotiated directly between the Fund and a financial institution. OTC contracts do not necessarily have standard terms, so they may be
    less liquid and more difficult to close out than exchange-traded contracts. In addition, OTC contracts with more specialized terms may be more difficult to value than exchange-traded contracts, especially in times of
    financial stress.

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    market for swaps and other OTC derivatives was largely unregulated prior to the enactment of federal legislation known as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank
    Act”). Regulations enacted by the Commodity Futures Trading Commission (the CFTC) under the Dodd-Frank Act require the Fund to clear certain swap contracts through a clearing house or central counterparty (a
    CCP).

    To
    clear a swap through the CCP, the Fund will submit the contract to, and post margin with, a futures commission merchant (FCM) that is a clearing house member. The Fund may enter into the swap with a financial
    institution other than the FCM and arrange for the contract to be transferred to the FCM for clearing, or enter into the contract with the FCM itself. If the Fund must centrally clear a transaction, the CFTC's
    regulations also generally require that the swap be executed on a registered exchange or through a market facility that is known as a swap execution facility or SEF. Central clearing is presently required only for
    certain swaps; the CFTC is expected to impose a mandatory central clearing requirement for additional derivative instruments over time.

    los
    CCP, SEF and FCM are all subject to regulatory oversight by the CFTC. In addition, most derivative market participants are now regulated as swap dealers or major swap participants and are subject to certain minimum
    capital and margin requirements and business conduct standards. Similar regulatory requirements are expected to apply to derivative contracts that are subject to the jurisdiction of the SEC, although the SEC has not
    yet finalized its regulations. In addition, uncleared OTC swaps will be subject to regulatory collateral requirements that could adversely affect the Fund's ability to enter into swaps in the OTC market. These
    developments could cause the Fund to terminate new or existing swap agreements or to realize amounts to be received under such instruments at an inopportune time.

    Until
    the mandated rulemaking and regulations are implemented completely, it will not be possible to determine the complete impact of the Dodd-Frank Act and related regulations on the Fund.

    Depending on how the Fund uses derivative contracts and the relationships between the market value of a derivative contract and the Reference Instrument, derivative contracts may increase or decrease the Fund's
    exposure to the risks of the Reference Instrument, and may also expose the Fund to liquidity and leverage risks. OTC contracts also expose the Fund to credit risks in the event that a counterparty defaults on the
    contract, although this risk may be mitigated by submitting the contract for clearing through a CCP.

    Pago
    obligations arising in connection with derivative contracts are frequently required to be secured with margin (which is commonly called “collateral”). To the extent necessary to meet such requirements, the
    Fund may purchase U.S. Treasury and/or government agency securities.

    los
    Fund may invest in a derivative contract if it is permitted to own, invest in, or otherwise have economic exposure to the Reference Instrument. The Fund is not required to own a Reference Instrument in order to buy or
    sell a derivative contract relating to that Reference Instrument. The Fund may trade in the following specific types and/or combinations of derivative contracts:

    Futures Contracts (A Type of
    Derivative)

    Futures
    contracts provide for the future sale by one party and purchase by another party of a specified amount of a Reference Instrument at a specified price, date and time. Entering into a contract to buy a Reference
    Instrument is commonly referred to as buying a contract or holding a long position in the asset. Entering into a contract to sell a Reference Instrument is commonly referred to as selling a contract or holding a short
    position in the Reference Instrument. Futures contracts are considered to be commodity contracts. The Adviser has claimed an exclusion from the definition of the term “commodity pool operator” under the
    Commodity Exchange Act with respect to the Fund and, therefore, is not subject to registration or regulation with respect to the Fund. Futures contracts traded OTC are frequently referred to as forward contracts. los
    Fund can buy or sell financial futures (such as interest rate futures, index futures and security futures), as well as, currency futures and currency forward contracts.




    Option Contracts (A Type of
    Derivative)

    Option
    contracts (also called “options”) are rights to buy or sell a Reference Instrument for a specified price (the “exercise price”) during, or at the end of, a specified period. The seller (or
    “writer”) of the option receives a payment, or premium, from the buyer, which the writer keeps regardless of whether the buyer uses (or exercises) the option. A call option gives the holder (buyer) the
    right to buy the Reference Instrument from the seller (writer) of the option. A put option gives the holder the right to sell the Reference Instrument to the writer of the option. Options may be bought or sold on a
    wide variety of Reference Instruments. Options that are written on futures contracts will be subject to margin requirements similar to those applied to futures contracts.

    Swap Contracts (A Type of
    Derivative)

    A swap
    contract (also known as a “swap”) is a type of derivative contract in which two parties agree to pay each other (swap) the returns derived from Reference Instruments. Swaps do not always involve the
    delivery of the Reference Instruments by either party, and the parties might not own the Reference Instruments underlying the swap. The payments are usually made on a net basis so that, on any given day, the Fund
    would receive (or pay) only the amount by which its payment under the contract is less than (or exceeds) the amount of the other party's payment. Swap agreements are sophisticated instruments that can take many
    different forms and are known by a variety of names. Common types of swaps in which the Fund may invest include interest rate swaps, caps and floors, total return swaps, credit default swaps and currency swaps.

    OTHER INVESTMENTS, TRANSACTIONS,
    TECHNIQUES

    Hybrid Instruments

    Híbrido
    instruments combine elements of two different kinds of securities or financial instruments (such as a derivative contract). Frequently, the value of a hybrid instrument is determined by reference to changes in the
    value of a Reference Instrument (that is a designated security, commodity, currency, index or other asset or instrument including a derivative contract). The Fund may use hybrid instruments only in connection with
    permissible investment activities. Hybrid instruments can take on many forms including, but not limited to, the following forms. First, a common form of a hybrid instrument combines elements of a derivative contract
    with those of another security (typically a fixed-income security). In this case all or a portion of the interest or principal payable on a hybrid security is determined by reference to changes in the price of a
    Reference Instrument. Second, hybrid instruments may include convertible securities with conversion terms related to a Reference Instrument.

    Depending on the type and terms of the hybrid instrument, its risks may reflect a combination of the risks of investing in the Reference Instrument with the risks of investing in other securities, currencies and
    derivative contracts. Thus, an investment in a hybrid instrument may entail significant risks in addition to those associated with traditional securities or the Reference Instrument. Hybrid instruments are also
    potentially more volatile than traditional securities or the Reference Instrument. Moreover, depending on the structure of the particular hybrid, it may expose the Fund to leverage risks or carry liquidity risks.

    Asset Segregation

    In order to cover its obligations in connection with derivative contracts or special transactions, the Fund will either own the underlying assets, enter into offsetting transactions or set aside
    cash or readily marketable securities in each case, as provided by the SEC or SEC staff guidance. This requirement may cause the Fund to miss favorable trading opportunities, due to a lack of sufficient cash or
    readily marketable securities. This requirement may also cause the Fund to realize losses on offsetting or terminated derivative contracts or special transactions.

    Investing in Securities of Other
    Investment Companies

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    Fund may invest its assets in securities of other investment companies, including the securities of affiliated money market funds, as an efficient means of implementing its investment strategies and/or managing its
    uninvested cash. The Fund may also invest in high yield and loan instruments, including trade finance loan instruments, primarily by investing in another investment company (which is not available for general
    investment by the public) that owns those securities and that is advised by an affiliate of the Adviser. The Fund's investment in the trade finance instruments through these other investment vehicles may expose the
    Fund to risks of loss after redemption. The Fund may also invest in such securities directly. These other investment companies are managed independently of the Fund and incur additional fees and/or expenses which
    would, therefore, be borne indirectly by the Fund in connection with any such investment. However, the Adviser believes that the benefits and efficiencies of this approach should outweigh the potential additional fees
    and/or expenses.




    What are the Specific
    Risks of Investing in the Fund?

    los
    following provides general information on the risks associated with the Fund's principal investments. Any additional risks associated with the Fund's non-principal investments are described in the Fund's SAI. los
    Fund's SAI also may provide additional information about the risks associated with the Fund's principal investments.

    Risk Associated with
    Noninvestment-Grade Securities

    Securities rated below investment grade, also known as junk bonds, generally entail greater economic, credit and liquidity risks than investment-grade securities. For example, their prices are more volatile,
    economic downturns and financial setbacks may affect their prices more negatively, and their trading market may be more limited. These securities are considered speculative with respect to the issuer's ability to pay
    interest and repay principal.

    ISSUER Credit Risk

    It is
    possible that interest or principal on securities will not be paid when due. Noninvestment-grade securities generally have a higher default risk than investment-grade securities. Such non-payment or default may reduce
    the value of the Fund's portfolio holdings, its share price and its performance.

    Many
    fixed-income securities receive credit ratings from nationally recognized statistical rating organizations (NRSROs) such as Fitch Rating Service, Moody's Investor Services, Inc. and Standard & Poor's that assign
    ratings to securities by assessing the likelihood of an issuer and/or guarantor default. Higher credit ratings correspond to lower perceived credit risk and lower credit ratings correspond to higher perceived credit
    risk. Credit ratings may be upgraded or downgraded from time to time as an NRSRO's assessment of the financial condition of a party obligated to make payments with respect to such securities and credit risk changes.
    The impact of any credit rating downgrade can be uncertain. Credit rating downgrades may lead to increased interest rates and volatility in financial markets, which in turn could negatively affect the value of the
    Fund's portfolio holdings, its share price and its investment performance. Credit ratings are not a guarantee of quality. Credit ratings may lag behind the current financial conditions of the issuer and/or guarantor
    and do not provide assurance against default or other loss of money. Credit ratings do not protect against a decline in the value of a security. If a security has not received a rating, the Fund must rely entirely
    upon the Adviser's credit assessment.

    Fixed-income securities generally compensate for greater credit risk by paying interest at a higher rate. The difference between the yield of a security and the yield of a U.S. Treasury security or other appropriate
    benchmark with a comparable maturity (the “spread”) measures the additional interest paid for risk. Spreads may increase generally in response to adverse economic or market conditions. A security's spread
    may also increase if the security's rating is lowered, or the security is perceived to have an increased credit risk. An increase in the spread will cause the price of the security to decline if interest rates remain
    unchanged.

    Counterparty Credit Risk

    Crédito
    risk includes the possibility that a party to a transaction involving the Fund will fail to meet its obligations. This could cause the Fund to lose money or to lose the benefit of the transaction or prevent the Fund
    from selling or buying other securities to implement its investment strategy.

    RISK RELATED TO THE ECONOMY

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    value of the Fund's portfolio may decline in tandem with a drop in the overall value of the markets in which the Fund invests and/or other markets based on negative developments in the U.S. and global economies.
    Economic, political and financial conditions, or industry or economic trends and developments, may, from time to time, and for varying periods of time, cause volatility, illiquidity or other potentially adverse
    effects in the financial markets, including the fixed-income market. The commencement, continuation or ending of government policies and economic stimulus programs, changes in monetary policy, increases or decreases
    in interest rates, or other factors or events that affect the financial markets, including the fixed-income markets, may contribute to the development of or increase in volatility, illiquidity, shareholder redemptions
    and other adverse effects, which could negatively impact the Fund's performance. For example, the value of certain portfolio securities may rise or fall in response to changes in interest rates, which could result
    from a change in government policies, and has the potential to cause investors to move out of certain portfolio securities, including fixed-income securities, on a large scale. This may increase redemptions from funds
    that hold large amounts of certain securities and may result in decreased liquidity and increased volatility in the financial markets. Market factors, such as the demand for particular portfolio securities, may cause
    the price of certain portfolio securities to fall while the prices of other securities rise or remain unchanged. Among other investments, lower-grade bonds and loans may be particularly sensitive to changes in the
    economy.




    LIQUIDITY RISK

    Trading
    opportunities are more limited for fixed-income securities that have not received any credit ratings, have received any credit ratings below investment grade or are not widely held. These features may make it more
    difficult to sell or buy a security at a favorable price or time. Consequently, the Fund may have to accept a lower price to sell a security, sell other securities to raise cash or give up an investment opportunity,
    any of which could have a negative effect on the Fund's performance. Infrequent trading of securities may also lead to an increase in their price volatility.

    Liquidity risk also refers to the possibility that the Fund may not be able to sell a security or close out a derivative contract when it wants to. If this happens, the Fund will be required to continue to hold the
    security or keep the position open, and the Fund could incur losses.

    OTC
    derivative contracts generally carry greater liquidity risk than exchange-traded contracts. This risk may be increased in times of financial stress, if the trading market for OTC derivative contracts becomes
    restricted.

    Interest Rate Risk

    Prices
    of fixed-income securities rise and fall in response to changes in interest rates. Generally, when interest rates rise, prices of fixed-income securities fall. However, market factors, such as the demand for
    particular fixed-income securities, may cause the price of certain fixed-income securities to fall while the prices of other securities rise or remain unchanged.

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    longer the duration of a fixed-income security, the more susceptible it is to interest rate risk. The duration of a fixed-income security may be equal to or shorter than the stated maturity of a fixed-income security.
    Recent and potential futures changes in monetary policy made by central banks and/or their governments are likely to affect the level of interest rates. Duration measures the price sensitivity of a fixed-income
    security given a change in interest rates. For example, if a fixed-income security has an effective duration of three years, a 1% increase in general interest rates would be expected to cause the security's value to
    decline about 3% while a 1% decrease in general interest rates would be expected to cause the security's value to increase about 3%.

    Risk of Foreign Investing

    Foreign
    securities pose additional risks because foreign economic or political conditions may be less favorable than those of the United States. Securities in foreign markets may also be subject to taxation policies that
    reduce returns for U.S. investors.

    Foreign
    companies may not provide information (including financial statements) as frequently or to as great an extent as companies in the United States. Foreign companies may also receive less coverage than U.S. companies by
    market analysts and the financial press. In addition, foreign countries may lack uniform accounting, auditing and financial reporting standards or regulatory requirements comparable to those applicable to U.S.
    companies. These factors may prevent the Fund and its Adviser from obtaining information concerning foreign companies that is as frequent, extensive and reliable as the information available concerning companies in
    the United States.

    Foreign
    countries may have restrictions on foreign ownership of securities or may impose exchange controls, capital flow restrictions or repatriation restrictions which could adversely affect the liquidity of the Fund's
    investments.

    Since
    many loan instruments involve parties (for example, lenders, borrowers and agent banks) located in multiple jurisdictions outside of the United States, there is a risk that a security interest in any related
    collateral may be unenforceable and obligations under the related loan agreements may not be binding.

    Currency Risk

    Exchange rates for currencies fluctuate daily. The combination of currency risk and market risks tends to make securities traded in foreign markets more volatile than securities traded exclusively in the United
    States. The Adviser attempts to manage currency risk by limiting the amount the Fund invests in securities denominated in a particular currency. However, diversification will not protect the Fund against a general
    increase in the value of the U.S. dollar relative to other currencies.

    Investing in currencies or securities denominated in a foreign currency, entails risk of being exposed to a currency that may not fully reflect the strengths and weaknesses of the economy of the country or region
    utilizing the currency. Currency risk includes both the risk that currencies in which the Fund's investments are traded, or currencies in which the Fund has taken an active investment position, will decline in value
    relative to the U.S. dollar and, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. In addition, it is possible that a currency (such as, for example,
    the euro) could be abandoned in the future by countries that have already adopted its use, and the effects of such an abandonment on the applicable country and the rest of the countries utilizing the currency are
    uncertain but could negatively affect the Fund's investments denominated in the currency. If a currency used by a country or countries is replaced by another currency, the Fund's Adviser would evaluate whether to
    continue to hold any investments denominated in such currency, or whether to purchase investments denominated in the currency that replaces such currency, at the time. Such investments may continue to be held, or
    purchased, to the extent consistent with the Fund's investment objective(s) and permitted under applicable law.




    Many countries rely heavily upon export-dependent businesses and any strength in the exchange rate between a currency and the U.S. dollar or other currencies can have either a positive or a
    negative effect upon corporate profits and the performance of investments in the country or region utilizing the currency. Adverse economic events within such country or region may increase the volatility of exchange
    rates against other currencies, subjecting the Fund's investments denominated in such country's or region's currency to additional risks. In addition, certain countries, particularly emerging market countries, may
    impose foreign currency exchange controls or other restrictions on the transferability, repatriation or convertibility of currency.

    eurozone Related risk

    UN
    number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic and financial difficulties. Additional EU member countries may also fall subject to such difficulties.
    These events could negatively affect the value and liquidity of the Fund's investments in euro-denominated securities and derivatives contracts, securities of issuers located in the EU or with significant exposure to
    EU issuers or countries. If the euro is dissolved entirely, the legal and contractual consequences for holders of euro-denominated obligations and derivative contracts would be determined by laws in effect at such
    time. Such investments may continue to be held, or purchased, to the extent consistent with the Fund's investment objective(s) and permitted under applicable law. These potential developments, or market perceptions
    concerning these and related issues, could adversely affect the value of the Shares.

    Certain
    countries in the EU have had to accept assistance from supra-governmental agencies such as the International Monetary Fund, the European Stability Mechanism (the ESM) or other supra-governmental agencies. The European
    Central Bank has also been intervening to purchase Eurozone debt in an attempt to stabilize markets and reduce borrowing costs. There can be no assurance that these agencies will continue to intervene or provide
    further assistance and markets may react adversely to any expected reduction in the financial support provided by these agencies. Responses to the financial problems by European governments, central banks and others
    including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences.

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    addition, one or more countries may abandon the euro and/or withdraw from the EU. The impact of these actions, especially if they occur in a disorderly fashion, could be significant and far-reaching. In June 2016, the
    United Kingdom (U.K.) approved a referendum to leave the EU, commonly referred to as “Brexit,” which sparked depreciation in the value of the British pound, short-term declines in global stock markets and
    heightened risk of continued worldwide economic volatility. As a result of Brexit, there is considerable uncertainty as to the arrangements that will apply to the U.K.'s relationship with the EU and other countries
    leading up to, and following, its withdrawal. This long-term uncertainty may affect other countries in the EU and elsewhere. Further, the U.K.'s departure from the EU may cause volatility within the EU, triggering
    prolonged economic downturns in certain European countries or sparking additional member states to contemplate departing the EU. In addition, Brexit can create actual or perceived additional economic stresses for the
    U.K., including potential for decreased trade, capital outflows, devaluation of the British pound, wider corporate bond spreads due to uncertainty and possible declines in business and consumer spending as well as
    foreign direct investment.

    Leverage Risk

    Leverage risk is created when an investment, which includes, for example, an investment in a derivative contract, exposes the Fund to a level of risk that exceeds the amount invested. Changes in the value of such an
    investment magnify the Fund's risk of loss and potential for gain. Investments can have these same results if their returns are based on a multiple of a specified index, security or other benchmark.

    Risk of Investing in Emerging
    Market Countries

    Securities issued or traded in emerging markets generally entail greater risks than securities issued or traded in developed countries. For example, their prices may be significantly more volatile than prices in
    developed countries. Emerging market economies may also experience more severe down-turns (with corresponding currency devaluations) than developed economies.

    Emerging market countries may have relatively unstable governments and may present the risk of nationalization of businesses, expropriation, confiscatory taxation or, in certain instances, reversion to closed
    market, centrally planned economies.

    Risk of Investing in Derivative
    Contracts and Hybrid Instruments

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    Fund's exposure to derivative contracts and hybrid instruments (either directly or through its investment in another investment company) involves risks different from, or possibly greater than, the risks associated
    with investing directly in securities and other traditional investments. First, changes in the value of the derivative contracts and hybrid instruments in which the Fund invests may not be correlated with changes in
    the value of the underlying Reference Instruments or, if they are correlated, may move in the opposite direction than originally anticipated. Second, while some strategies involving




    derivatives may reduce the risk of loss,
    they may also reduce potential gains or, in some cases, result in losses by offsetting favorable price movements in portfolio holdings. Third, there is a risk that derivative contracts and hybrid instruments may be
    erroneously priced or improperly valued and, as a result, the Fund may need to make increased cash payments to the counterparty. Fourth, exposure to derivative contracts and hybrid instruments may have tax
    consequences to the Fund and its shareholders. For example, derivative contracts and hybrid instruments may cause the Fund to realize increased ordinary income or short-term capital gains (which are treated as
    ordinary income for Federal income tax purposes) and, as a result, may increase taxable distributions to shareholders. In addition, under certain circumstances certain derivative contracts and hybrid instruments may
    cause the Fund to: (a) incur an excise tax on a portion of the income related to those contracts and instruments; and/or (b) reclassify, as a return of capital, some or all of the distributions previously made to
    shareholders during the fiscal year as dividend income. Fifth, a common provision in OTC derivative contracts permits the counterparty to terminate any such contract between it and the Fund, if the value of the Fund's
    total net assets declines below a specified level over a given time period. Factors that may contribute to such a decline (which usually must be substantial) include significant shareholder redemptions and/or a marked
    decrease in the market value of the Fund's investments. Any such termination of the Fund's OTC derivative contracts may adversely affect the Fund (for example, by increasing losses and/or costs, and/or preventing the
    Fund from fully implementing its investment strategies). Sixth, the Fund may use a derivative contract to benefit from a decline in the value of a Reference Instrument. If the value of the Reference Instrument
    declines during the term of the contract, the Fund makes a profit on the difference (less any payments the Fund is required to pay under the terms of the contract). Any such strategy involves risk. There is no
    assurance that the Reference Instrument will decline in value during the term of the contract and make a profit for the Fund. The Reference Instrument may instead appreciate in value creating a loss for the Fund.
    Seventh, a default or failure by a CCP or an FCM (also sometimes called a “futures broker”), or the failure of a contract to be transferred from an Executing Dealer to the FCM for clearing, may expose the
    Fund to losses, increase its costs, or prevent the Fund from entering or exiting derivative positions, accessing margin, or fully implementing its investment strategies. The central clearing of a derivative and
    trading of a contract over a SEF could reduce the liquidity in, or increase costs of entering into or holding, any contracts. Finally, derivative contracts and hybrid instruments may also involve other risks described
    in this Prospectus, such as interest rate, credit, currency, liquidity and leverage risks.

    RISK OF LOSS AFTER REDEMPTION

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    Fund may also invest in trade finance loan instruments primarily by investing in other investment companies (which are not available for general investment by the public) that owns those instruments, and that are
    advised by an affiliate of the Adviser and is structured as an extended payment fund (EPF). In the EPF, the Fund, as shareholder, will bear the risk of investment loss during the period between when shares of such EPF
    are presented to the transfer agent of the EPF for redemption and when the net asset value of the EPF is determined for payment of the redeemed EPF shares (the “Redemption Pricing Date”). The time between
    when EPF shares are presented for redemption and the Redemption Pricing Date will be at least twenty-four (24) calendar days. EPF shares tendered for redemption will participate proportionately in the EPF's gains and
    losses during between when EPF shares are presented for redemption and the Redemption Pricing Date. During this time the value of the EPF shares will likely fluctuate and EPF shares presented for redemption could be
    worth less on the Redemption Pricing Date than on the day the EPF shares were presented to the transfer agent of the EPF for redemption. The EPF has adopted a fundamental policy that may only be changed by shareholder
    vote, that the Redemption Pricing Date will fall no more than twenty-four (24) days after the date the Fund, as shareholder, presents EPF shares for redemption in good order. If such date is a weekend or holiday, the
    Redemption Pricing Date will be on the preceding business day.

    technology Risk

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    Adviser uses various technologies in managing the Fund, consistent with its investment objective(s) and strategy described in this Prospectus. For example, proprietary and third-party data and systems are utilized to
    support decision-making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively
    affect Fund performance.

    What Do Shares Cost?

    CALCULATION OF NET ASSET
    VALUE

    Cuando
    the Fund receives your transaction request in proper form (as described in this Prospectus under the sections entitled “How to Purchase Shares” and “How to Redeem and Exchange Shares”), it is
    processed at the next calculated net asset value of a Share (NAV). A Share's NAV is determined as of the end of regular trading on the New York Stock Exchange (NYSE) (normally 4:00 p.m. Eastern time) each day the NYSE
    is open. The Fund calculates the NAV of each class by valuing the assets allocated to each class and dividing the balance by the number of Shares of the class outstanding.




    The NAV for each class of Shares may
    differ due to the level of expenses allocated to each class as well as a result of the variance between the amount of accrued investment income and capital gains or losses allocated to each class and the amount
    actually distributed to shareholders of each class. The Fund's current NAV and/or public offering price may be found at FederatedInvestors.com, via online news sources and in certain newspapers.

    Tú
    can purchase, redeem or exchange Shares any day the NYSE is open.

    Cuando
    the Fund holds securities that trade principally in foreign markets on days the NYSE is closed, the value of the Fund's assets may change on days you cannot purchase or redeem Shares. This may also occur when the U.S.
    markets for fixed-income securities are open on a day the NYSE is closed.

    En
    calculating its NAV, the Fund generally values investments as follows:

    ■  Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (“Board”).
    ■  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 Board.

    If any
    price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund 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 Fund's valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the Valuation Committee, is deemed not
    representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures generally described below. There can be no assurance that the Fund could
    obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.

    Shares
    of other mutual funds are valued based upon their reported NAVs. The prospectuses for these mutual funds explain the circumstances under which they will use fair value pricing and the effects of using fair value
    pricing.

    Fair Valuation and Significant
    Events Procedures

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    Board has ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Board has appointed a Valuation Committee comprised of officers of the Fund,
    the Adviser and certain of the Adviser's affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Board has 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. 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 Board. The Board periodically reviews and approves the fair valuations made by the
    Valuation Committee and any changes made to the procedures. The Fund's SAI discusses the methods used by pricing services and the Valuation Committee to assist the Board in valuing investments.

    Using
    fair value to price investments may result in a value that is different from an investment's most recent closing price and from the prices used by other mutual funds to calculate their NAVs. The application of the
    fair value procedures to an investment represent a good faith determination of such investment's fair value. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the
    investment at approximately the time at which the Fund determines its NAV per share.

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    Board also has adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as
    of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's
    value will change in response to the event and a reasonable basis for quantifying the resulting change in value.

    Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

    ■  With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;
    ■  Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; y
    ■  Announcements concerning matters such as acquisitions, recapitalizations or litigation developments or a natural disaster affecting the issuer's operations or regulatory changes or
    market developments affecting the issuer's industry.



    The Board has adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from
    the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from
    alternative pricing sources. If a reliable alternative pricing source is not available, the Valuation Committee will determine the fair value of the investment using another method approved by the Board. The Board has
    ultimate responsibility for any fair valuations made in response to a significant event.

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    fair valuation of securities following a significant event can serve to reduce arbitrage opportunities for short-term traders to profit at the expense of long-term investors in the Fund. For example, such arbitrage
    opportunities may exist when the market on which portfolio securities are traded closes before the Fund calculates its NAV, which is typically the case with Asian and European markets. However, there is no assurance
    that these significant event procedures will prevent dilution of the NAV by short-term traders. See “Account and Share Information–Frequent Trading Policies” for other procedures the Fund employs to deter such short-term trading.

    COMMISSIONS ON SHARES

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    Fund does not charge any front-end load, deferred sales charge or other asset-based fee for sales or distribution of Shares. However, if you purchase Shares through a broker acting solely as an agent on behalf of its
    customers, you may be required to pay a commission to the broker in an amount determined and separately disclosed to you by the broker.

    Because
    the Fund is not a party to any such commission arrangement between you and your broker, any purchases and redemptions of Shares will be made at the applicable net asset value (before imposition of the sales
    commission). Any such commissions charged by a broker are not reflected in the fees and expenses listed in the “Risk/Return Summary: Fees and Expenses” section of the Fund's Prospectus and described above
    nor are they reflected in the “Performance: Bar Chart and Table,” because they are not charged by the Fund.

    How is the Fund Sold?

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    Fund offers the following Share classes: Institutional Shares (IS) and Class R6 Shares (R6), each representing interests in a single portfolio of securities. All Share classes have different expenses which affect
    their performance. Please note that certain purchase restrictions may apply.

    Debajo
    the Distributor's Contract with the Fund, the Distributor, Federated Securities Corp., offers Shares on a continuous, best-efforts basis. The Distributor is a subsidiary of Federated Investors, Inc.
    (“Federated”).

    IS Class

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    Fund's Distributor markets the IS class to Eligible Investors, as described below. In connection with a request to purchase the IS class, you should provide documentation sufficient to verify your status as an
    Eligible Investor. As a general matter, the IS class is not available for direct investment by natural persons.

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    following categories of Eligible Investors are not subject to any minimum initial investment amount for the purchase of the IS class (however, such accounts remain subject to the Fund's policy on “Accounts with
    Low Balances” as discussed later in this Prospectus):

    ■  An investor participating in a no-load platform, network or other fee-based program offered by a financial intermediary, for example, a wrap-account or retirement platform where Federated has entered
    into an agreement with the intermediary;
    ■  A trustee/director, employee or former employee of the Fund, the Adviser, the Distributor and their affiliates; an immediate family member of these individuals or a trust, pension or profit-sharing plan
    for these individuals;
    ■  An employer-sponsored retirement plan;
    ■  A trust institution investing on behalf of its trust customers;
    ■  Additional sales to an investor (including a natural person) who owned the IS class of the Fund as of December 31, 2008;
    ■  A Federated Fund;
    ■  An investor (including a natural person) who acquired the IS class of a Federated fund pursuant to the terms of an agreement and plan of reorganization which permits the investor to acquire such shares;
    y
    ■  In connection with an acquisition of an investment management or advisory business, or related investment services, products or assets, by Federated or its investment advisory
    subsidiaries, an investor (including a natural person) who: (1) becomes a client of an investment advisory subsidiary of Federated; or (2) is a shareholder or interest holder of a pooled investment vehicle or product
    that becomes advised or subadvised by a Federated investment advisory subsidiary as a result of such an acquisition other than as a result of a fund reorganization transaction pursuant to an agreement and plan of
    reorganization.



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    following categories of Eligible Investors are subject to applicable minimum initial investment amounts for the purchase of the IS class (see “How to Purchase Shares” below):

    ■  An investor, other than a natural person, purchasing the IS class directly from the Fund; y
    ■  In connection with an initial purchase of the IS class through an exchange, an investor (including a natural person) who owned the IS class of another Federated fund as of December
    31, 2008.

    R6 Class

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    Fund's Distributor markets the R6 class to Eligible Investors, as described below. The R6 Shares are sold at net asset value and are not subject to any minimum initial or subsequent investment amounts. In connection
    with a request to purchase the R6 class, you should provide documentation sufficient to verify your status as an Eligible Investor.

    R6
    Shares do not carry sales commissions or pay Rule 12b-1 fees, or make similar payments to financial intermediaries. As a general matter, the R6 class is not available for direct investment by natural persons.
    Individual shareholders who purchase R6 Shares through retirement platforms or other intermediaries will not be eligible to hold R6 Shares outside of their respective plan or intermediary platform.

    Following are categories of Eligible Investors:

    ■  An investor participating in a no-load platform, network or other fee-based program offered by a financial intermediary, for example, a wrap-account or retirement platform where Federated has entered
    into an agreement with the intermediary;
    ■  A trustee/director, employee or former employee of the Fund, the Adviser, the Distributor and their affiliates; an immediate family member of these individuals or a trust, pension or profit-sharing plan
    for these individuals;
    ■  An employer-sponsored retirement plan;
    ■  A trust institution investing on behalf of its trust customers;
    ■  An investor, other than a natural person, purchasing Shares directly from the Fund;
    ■  A Federated Fund;
    ■  An investor (including a natural person) who acquired the R6 class of a Federated fund pursuant to the terms of an agreement and plan of reorganization which permits the investor to acquire such shares;
    y
    ■  In connection with an acquisition of an investment management or advisory business, or related investment services, products or assets, by Federated or its investment advisory
    subsidiaries, an investor (including a natural person) who: (1) becomes a client of an investment advisory subsidiary of Federated; or (2) is a shareholder or interest holder of a pooled investment vehicle or product
    that becomes advised or subadvised by a Federated investment advisory subsidiary as a result of such an acquisition other than as a result of a fund reorganization transaction pursuant to an agreement and plan of
    reorganization.

    Intra-Fund Share Conversion
    Program

    UN
    shareholder in the Fund's Shares may convert their Shares at net asset value to any other share class of the Fund if the shareholder meets the investment minimum and eligibility requirements for the share class into
    which the conversion is sought, as applicable. Such conversion of classes should not result in a realization event for tax purposes. Contact your financial intermediary or call 1-800-341-7400 to convert your
    Shares.

    Payments to Financial
    Intermediaries

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    Fund and its affiliated service providers may pay fees as described below to financial intermediaries (such as broker-dealers, banks, investment advisers or third-party administrators) whose customers are shareholders
    of the Fund.

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    Fund's Class R6 Shares do not make any payments to financial intermediaries, either from Fund assets or from the investment adviser and its affiliates.

    RECORDKEEPING FEES

    IS Class

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    Fund may pay Recordkeeping Fees on an average-net-assets basis or on a per-account-per-year basis to financial intermediaries for providing recordkeeping services to the Fund and its shareholders. If a financial
    intermediary receives Recordkeeping Fees on an account, it is not eligible to also receive Networking Fees on that same account.




    networking fees

    IS Class

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    Fund may reimburse Networking Fees on a per-account-per-year basis to financial intermediaries for providing administrative services to the Fund and its shareholders on certain non-omnibus accounts. If a financial
    intermediary receives Networking Fees on an account, it is not eligible to also receive Recordkeeping Fees on that same account.

    ADDITIONAL PAYMENTS TO FINANCIAL
    INTERMEDIARIES

    IS Class

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    Distributor may pay out of its own resources amounts to certain financial intermediaries, including broker-dealers, banks, registered investment advisers, independent financial planners and retirement plan
    administrators, that support the sale of Shares or provide services to Fund shareholders. The amounts of these payments could be significant, and may create an incentive for the financial intermediary or its employees
    or associated persons to recommend or sell Shares of the Fund to you. Not all financial intermediaries receive such payments, and the amount of compensation may vary by intermediary. In some cases, such payments may
    be made by or funded from the resources of companies affiliated with the Distributor (including the Adviser). These payments are not reflected in the fees and expenses listed in the fee table section of the Fund's
    Prospectus and described above because they are not paid by the Fund.

    These
    payments are negotiated and may be based on such factors as: the number or value of Shares that the financial intermediary sells or may sell; the value of client assets invested; the level and types of services or
    support furnished by the financial intermediary; or the Fund's and/or other Federated funds' relationship with the financial intermediary. These payments may be in addition to payments, as described above, made by the
    Fund to the financial intermediary. In connection with these payments, the financial intermediary may elevate the prominence or profile of the Fund and/or other Federated funds, within the financial intermediary's
    organization by, for example, placement on a list of preferred or recommended funds and/or granting the Distributor preferential or enhanced opportunities to promote the funds in various ways within the financial
    intermediary's organization. In addition, as discussed above in “Commissions on Shares,” if you purchase Shares through a broker acting solely as an agent on behalf of its customers, you may be required to
    pay a commission to the broker in an amount determined and separately disclosed to you by the broker. You can ask your financial intermediary for information about any payments it receives from the Distributor or the
    Fund and any services provided, as well as about fees and/or commissions it charges.

    How to Purchase
    Shares

    You may
    purchase Shares of the Fund any day the NYSE is open. Shares will be purchased at the NAV next calculated after your investment is received by the Fund, or its agent, in proper form. The Fund reserves the right to
    reject any request to purchase or exchange Shares. New investors must submit a completed New Account Form. All accounts, including those for which there is no minimum initial investment amount required, are subject to
    the Fund's policy on “Accounts with Low Balances” as discussed later in this Prospectus.

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    important account information, see the section “Security and Privacy Protection.”

    IS Class

    Eligible investors may purchase Shares through a financial intermediary, directly from the Fund or through an exchange from another Federated fund in the manner described above under “How is the Fund
    Sold?”

    Where
    applicable, the required minimum initial investment for the IS class is generally $1,000,000. There is no minimum subsequent investment amount.

    R6 Class

    Eligible Investors may purchase Shares through a financial intermediary, directly from the Fund or through an exchange from another Federated fund in the manner described above under “How is the Fund
    Sold?”

    There
    is no minimum initial or subsequent investment amount required.

    THROUGH A FINANCIAL
    INTERMEDIARY

    ■  Establish an account with the financial intermediary; y
    ■  Submit your purchase order to the financial intermediary before the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time).

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    Fund has authorized certain intermediaries to accept share purchase orders on its behalf. When authorized intermediaries receive an order in proper form, the order is considered as being placed with the Fund, and
    shares will be bought at the NAV next calculated after such an order is received by the authorized intermediary. If your financial intermediary is not an authorized intermediary, the Fund or its agent must receive the
    purchase order in proper form from




    your financial intermediary by the end of
    regular trading on the NYSE (normally, 4:00 p.m. Eastern time) in order for your transaction to be priced at that day's NAV. In addition, your financial intermediary must forward your payment by the prescribed trade
    settlement date (typically within one to three business days) to the Fund's transfer agent, State Street Bank and Trust Company (“Transfer Agent”). You will become the owner of Shares and receive dividends
    when your payment is received in accordance with these time frames (provided that, if payment is received in the form of a check, the check clears). If your payment is not received in accordance with these time
    frames, or a check does not clear, your purchase will be canceled and you could be liable for any losses, fees or expenses incurred by the Fund or the Fund's Transfer Agent.

    Financial intermediaries should send payments according to the instructions in the sections “By Wire” or “By Check.”

    Financial intermediaries may impose higher or lower minimum investment requirements on their customers than those imposed by the Fund. Keep in mind that financial intermediaries may charge you fees for their
    services in connection with your Share transactions.

    Shareholders are encouraged to ask their financial intermediary if they are an authorized agent for the Fund and about any fees that may be charged by the financial intermediary.

    DIRECTLY FROM THE FUND

    ■  Establish your account with the Fund by submitting a completed New Account Form; y
    ■  Send your payment to the Fund by Federal Reserve wire or check.

    Tú
    will become the owner of Shares and your Shares will be priced at the next calculated NAV after the Fund receives your wire or your check. If your check does not clear, your purchase will be canceled and you could be
    liable for any losses or fees incurred by the Fund or the Fund's Transfer Agent.

    By Wire

    To
    facilitate processing your order, please call the Fund before sending the wire. Send your wire to:

    Estado
    Street Bank and Trust Company
    Boston, MA
    Dollar Amount of Wire
    ABA Number 011000028
    BNF: 23026552
    Attention: Federated EDGEWIRE
    Wire Order Number, Dealer Number or Group Number
    Nominee/Institution Name
    Fund Name and Number and Account Number

    Tú
    cannot purchase Shares by wire on holidays when wire transfers are restricted.

    By Check

    Make
    your check payable to The Federated Funds, note your account number on the check, and send it to:

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    Federated Funds
    CORREOS. Box 219318
    Kansas City, MO 64121-9318

    If you
    send your check by a private courier or overnight delivery service that requires a street address, send it to:

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    Federated Funds
    430 W 7th Street
    Suite 219318
    Kansas City, MO 64105-1407

    Pago
    should be made in U.S. dollars and drawn on a U.S. bank. The Fund reserves the right to rejectany purchase request. For example, to protect against check fraud the Fund may reject any purchase request involving a check that is not made payable to The Federated Funds (including, but not limited to, requests to purchase Shares using third-party checks) or involving temporary checks or credit card checks.

    By Direct Deposit

    You may establish Payroll Deduction/Direct Deposit arrangements for investments into the Fund by either calling a Client Service Representative at 1-800-341-7400; or by completing the Payroll
    Deduction/Direct Deposit Form, which is available on FederatedInvestors.com under “Resources” and then “Literature and Forms,” then “Forms.” You will receive a confirmation when
    this service is available.




    THROUGH AN EXCHANGE

    Tú
    may purchase Fund Shares through an exchange from another Federated fund. To do this you must:

    ■  meet any applicable shareholder eligibility requirements;
    ■  ensure that the account registrations are identical;
    ■  meet any applicable minimum initial investment requirements; y
    ■  receive a prospectus for the fund into which you wish to exchange.

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    exchange is treated as a redemption and a subsequent purchase, and is a taxable transaction. The Fund reserves the right to reject any request to purchase or exchange Shares. The Fund may modify or terminate the
    exchange privilege at any time.

    IS & R6 Classes

    You may
    purchase Shares through an exchange from any Federated fund or share class that does not have a stated sales charge or contingent deferred sales charge, except Shares of Federated Institutional Money Market
    Management, Federated Institutional Tax-Free Cash Trust, Federated Institutional Prime Obligations Fund, Federated Institutional Prime Value Obligations Fund, Class A Shares of Federated Government Reserves Fund and
    Class R Shares of any Fund.

    By Online Account Services

    You may access your accounts online to purchase shares through Federated's Shareholder Account Access system once you have registered for access. Online transactions may be subject to certain
    limitations including limitations as to the amount of the transaction. For more information about the services available through Shareholder Account Access, please visit www.FederatedInvestors.com and select
    “Sign In” and “Access and Manage Investments,” or call (800) 245-4770 to speak with a Client Service Representative.

    BY SYSTEMATIC INVESTMENT PROGRAM
    (SIP)

    Una vez
    you have opened an account, you may automatically purchase additional Shares on a regular basis by completing the SIP section of the New Account Form or by contacting the Fund or your financial intermediary. los
    minimum investment amount for SIPs is $50.

    BY AUTOMATED CLEARING HOUSE
    (ACH)

    Una vez
    you have opened an account, you may purchase additional Shares through a depository institution that is an ACH member. This purchase option can be established by completing the appropriate sections of the New Account
    Form.

    RETIREMENT INVESTMENTS

    R6 Class

    You may
    purchase Shares as retirement investments (such as qualified plans or transfer of assets). Call your financial intermediary or the Fund for information on retirement investments. We suggest that you discuss retirement
    investments with your tax adviser. You may be subject to an account fee charged by your financial intermediary.

    How to Redeem and
    Exchange Shares

    Tú
    should redeem or exchange Shares:

    ■  through a financial intermediary if you purchased Shares through a financial intermediary; o
    ■  directly from the Fund if you purchased Shares directly from the Fund.

    Shares
    of the Fund may be redeemed for cash, or exchanged for shares of other Federated funds as described herein, on days on which the Fund computes its NAV. Redemption requests may be made by telephone or in writing.

    Shares may be redeemed at the NAV next determined after the Fund receives the redemption request.

    Redemption proceeds normally are wired or mailed within one business day for each method of payment after receiving a timely request in proper form. Depending upon the method of payment, when shareholders receive
    redemption proceeds can differ. Payment may be delayed for up to seven days under certain circumstances (see “Limitations on Redemption Proceeds”).

    por
    important account information, see the section “Security and Privacy Protection.”

    THROUGH A FINANCIAL
    INTERMEDIARY

    Enviar
    your redemption or exchange request to your financial intermediary by the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time). The redemption amount you will receive is based upon the next calculated
    NAV after the Fund receives the order from your financial intermediary.




    DIRECTLY FROM THE FUND

    By Telephone

    Tú
    may redeem or exchange Shares by simply calling the Fund at 1-800-341-7400.

    If you
    call before the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time), you will receive a redemption amount based on that day's NAV.

    Por correo

    Tú
    may redeem or exchange Shares by sending a written request to the Fund.

    Tú
    will receive a redemption amount based on the next calculated NAV after the Fund receives your written request in proper form.

    Send
    requests by mail to:

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    Federated Funds
    CORREOS. Box 219318
    Kansas City, MO 64121-9318

    Send
    requests by private courier or overnight delivery service a:

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    Federated Funds
    430 W 7th Street
    Suite 219318
    Kansas City, MO 64105-1407

    All
    requests must include:

    ■  Fund name and Share class, account number and account registration;
    ■  amount to be redeemed or exchanged;
    ■  signatures of all shareholders exactly as registered; y
    ■  if exchanging , the Fund name and Share class, account number and account registration into which you are exchanging.

    Call
    your financial intermediary or the Fund if you need special instructions.

    Signature Guarantees

    Signatures must be guaranteed by a financial institution which is a participant in a Medallion signature guarantee program if:

    ■  your redemption will be sent to an address other than the address of record;
    ■  your redemption will be sent to an address of record that was changed within the last 30 days;
    ■  a redemption is payable to someone other than the shareholder(s) of record; o
    ■  transferring into another fund with a different shareholder registration.

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    Medallion signature guarantee is designed to protect your account from fraud. Obtain a Medallion signature guarantee from a bank or trust company, savings association, credit union or broker, dealer or securities
    exchange member. A notary public cannot provide a signature guarantee.

    By Online Account Services

    You may access your accounts online to redeem or exchange shares through Federated's Shareholder Account Access system once you have registered for access. Online transactions may be subject to
    certain limitations including limitations as to the amount of the transaction. For more information about the services available through Shareholder Account Access, please visit www.FederatedInvestors.com and select
    “Sign In” and “Access and Manage Investments,” or call (800) 245-4770 to speak with a Client Service Representative.

    PAYMENT METHODS FOR
    REDEMPTIONS

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    redemption proceeds will be mailed by check to your address of record. The following payment options are available if you complete the appropriate section of the New Account Form or an Account Service Options Form.
    These payment options require a signature guarantee if they were not established when the account was opened:

    ■  An electronic transfer to your account at a financial institution that is an ACH member; o
    ■  Wire payment to your account at a domestic commercial bank that is a Federal Reserve System member.

    Methods the Fund May Use to Meet
    Redemption Requests

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    Fund intends to pay Share redemptions in cash. To ensure that the Fund has cash to meet Share redemptions on any day, the Fund typically expects to hold a cash or cash equivalent reserve or sell portfolio
    securities.




    En
    unusual or stressed circumstances, the Fund may generate cash in the following ways:

    ■  Inter-fund Borrowing and Lending.
    The SEC has granted an exemption that permits the Fund and all other funds advised by subsidiaries of Federated Investors, Inc. (“Federated funds”) to lend and borrow money for
    certain temporary purposes directly to and from other Federated funds. Inter-fund borrowing and lending is permitted only: (a) to meet shareholder redemption requests; (b) to meet commitments arising from
    “failed” trades; and (c) for other temporary purposes. All inter-fund loans must be repaid in seven days or less.
    ■  Committed Line of Credit. The Fund participates with certain other Federated funds, on a joint basis, in an up to $500,000,000 unsecured, 364-day, committed, revolving line of credit (LOC) agreement. The LOC was
    made available to finance temporarily the repurchase or redemption of shares of the funds, failed trades, payment of dividends, settlement of trades and for other short-term, temporary or emergency general business
    purposes. The Fund cannot borrow under the LOC if an inter-fund loan is outstanding.
    ■  Redemption in Kind. Although the Fund intends to pay Share redemptions in cash, it reserves the right to pay the redemption price in whole or in part by an “in-kind” distribution of the Fund's
    portfolio securities. Because the Fund has elected to be governed by Rule 18f-1 under the 1940 Act, the Fund is obligated to pay Share redemptions to any one shareholder in cash only up to the lesser of $250,000 or 1%
    of the net assets represented by such Share class during any 90-day period. Redemptions in kind are made consistent with the procedures adopted by the Fund's Board, which generally include distributions of a pro rata
    share of the Fund's portfolio assets. Redemption in kind is not as liquid as a cash redemption. If redemption is made in kind, securities received may be subject to market risk and the shareholder could incur taxable
    gains and brokerage or other charges in converting the securities to cash.

    LIMITATIONS ON REDEMPTION
    PROCEEDS

    Redemption proceeds normally are wired or mailed within one business day after receiving a request in proper form. Payment may be delayed for up to seven days:

    ■  to allow your purchase to clear (as discussed below);
    ■  during periods of market volatility;
    ■  when a shareholder's trade activity or amount adversely impacts the Fund's ability to manage its assets; o
    ■  during any period when the Federal Reserve wire or applicable Federal Reserve banks are closed, other than customary weekend and holiday closings.

    If you
    request a redemption of Shares recently purchased by check (including a cashier's check or certified check), money order, bank draft or ACH, your redemption proceeds may not be made available for up to seven calendar
    days to allow the Fund to collect payment on the instrument used to purchase such Shares. If the purchase instrument does not clear, your purchase order will be canceled and you will be responsible for any losses
    incurred by the Fund as a result of your canceled order.

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    addition, the right of redemption may be suspended, or the payment of proceeds may be delayed (including beyond seven days), during any period:

    ■  when the NYSE is closed, other than customary weekend and holiday closings;
    ■  when trading on the NYSE is restricted, as determined by the SEC;
    ■  in which an emergency exists, as determined by the SEC, so that disposal of the Fund's investments or determination of its NAV is not reasonably practicable; o
    ■  as the SEC may by order permit for the protection of Fund shareholders.

    Tú
    will not accrue interest or dividends on uncashed redemption checks from the Fund when checks are undeliverable and returned to the Fund.

    redemptions from retirement
    accounts

    R6 Class

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    absence of your specific instructions, 10% of the value of your redemption from a retirement account in the Fund may be withheld for taxes. This withholding only applies to certain types of retirement accounts.

    EXCHANGE PRIVILEGE

    Tú
    may exchange Shares of the Fund. To do this, you must:

    ■  meet any applicable shareholder eligibility requirements;
    ■  ensure that the account registrations are identical;
    ■  meet any applicable minimum initial investment requirements; y
    ■  receive a prospectus for the fund into which you wish to exchange.



    Un
    exchange is treated as a redemption and a subsequent purchase, and is a taxable transaction. The Fund reserves the right to reject any request to purchase or exchange Shares. The Fund may modify or terminate the
    exchange privilege at any time.

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    addition, the Fund may terminate your exchange privilege if your exchange activity is found to be excessive under the Fund's frequent trading policies. See “Account and Share Information–Frequent Trading Policies.”

    IS & R6 Classes

    You may
    exchange Shares of the Fund for shares of any Federated fund or share class that does not have a stated sales charge or contingent deferred sales charge, except Shares of Federated Institutional Money Market
    Management, Federated Institutional Tax-Free Cash Trust, Federated Institutional Prime Obligations Fund, Federated Institutional Prime Value Obligations Fund, Class A Shares of Federated Government Reserves Fund and
    Class R Shares of any Fund.

    Systematic Withdrawal/Exchange
    Program

    You may
    automatically redeem or exchange Shares. The minimum amount for all new or revised systematic redemptions or exchanges of Shares is $50 per transaction per fund. Complete the appropriate section of the New Account
    Form or an Account Service Options Form or contact your financial intermediary or the Fund. Your account value must meet the minimum initial investment amount at the time the program is established. This program may
    reduce, and eventually deplete, your account. Payments should not be considered yield or income.

    ADDITIONAL CONDITIONS

    Telephone Transactions

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    Fund will record your telephone instructions. If the Fund does not follow reasonable procedures, it may be liable for losses due to unauthorized or fraudulent telephone instructions.

    Share Certificates

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    Fund no longer issues share certificates. If you are redeeming or exchanging Shares represented by certificates previously issued by the Fund, you must return the certificates with your written redemption or exchange
    request. For your protection, send your certificates by registered or certified mail, but do not endorse them.

    Security and Privacy
    Protection

    ONLINE ACCOUNT and TELEPHONE
    ACCESS SECURITY

    Federated Investors, Inc. will not be responsible for losses that result from unauthorized transactions, unless Federated does not follow procedures designed to verify your identity. When initiating a transaction by
    telephone or online, shareholders should be aware that any person with access to your account and other personal information including PINs (Personal Identification Numbers) may be able to submit instructions by
    telephone or online. Shareholders are responsible for protecting their identity by using strong usernames and complex passwords which utilize combinations of mixed case letters, numbers and symbols, and change
    passwords and PINs frequently.

    Using
    Federated's Account Access website means you are consenting to sending and receiving personal financial information over the Internet, so you should be sure you are comfortable with the risks. You will be required to
    accept the terms of an online agreement and to establish and utilize a password in order to access online account services. The Transfer Agent has adopted security procedures to confirm that internet instructions are
    genuine. The Transfer Agent will also send you written confirmation of share transactions. The Transfer Agent, the Fund and any of its affiliates will not be liable for losses or expenses that occur from fraudulent
    Internet instructions reasonably believed to be genuine.

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    Transfer Agent or the Fund will employ reasonable procedures to confirm that telephone transaction requests are genuine, which may include recording calls, asking the caller to provide certain personal identification
    information, sending you written confirmation, or requiring other confirmation security procedures. The Transfer Agent, the Fund and any of its affiliates will not be liable for relying on instructions submitted by
    telephone that the Fund reasonably believes to be genuine.

    ANTI-MONEY LAUNDERING
    COMPLIANCE

    To help
    the government fight the funding of terrorism and money laundering activities, federal law requires financial institutions to obtain, verify, and record information that identifies each new customer who opens a Fund
    account and to determine whether such person's name appears on governmental lists of known or suspected terrorists or terrorist organizations. Pursuant to the requirements under the USA PATRIOT Act, the information
    obtained will be used for compliance with the USA PATRIOT Act or other applicable laws, regulations and rules in connection with money laundering, terrorism or other illicit activities.




    Information required includes your name, residential or business address, date of birth (for an individual), and other information that identifies you, including your social security number, tax identification
    number or other identifying number. The Fund cannot waive these requirements. The Fund is required by law to reject your Account Application if the required information is not provided. If, after reasonable effort,
    the Fund is unable to verify your identity or that of any other person(s) authorized to act on your behalf, or believes it has identified potentially suspicious, fraudulent or criminal activity, the Fund reserves the
    right to close your account and redeem your shares at the next calculated NAV without your permission. Any applicable contingent deferred sales charge (CDSC) will be assessed upon redemption of your shares.

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    Fund has a strict policy designed to protect the privacy of your personal information. A copy of Federated Investors' privacy policy notice was given to you at the time you opened your account. The Fund sends a copy
    of the privacy notice to you annually. You may also obtain the privacy notice by calling the Fund, or through Federated Investors' website.

    Account and Share
    Information

    CONFIRMATIONS AND ACCOUNT
    STATEMENTS

    Tú
    will receive confirmation of purchases, redemptions and exchanges (except for systematic transactions). In addition, you will receive periodic statements reporting all account activity, including systematic
    transactions, dividends and capital gains paid.

    DIVIDENDS AND CAPITAL GAINS

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    Fund declares any dividends daily and pays them monthly to shareholders. If you purchase Shares by wire, you begin earning dividends on the day your wire is received. If you purchase Shares by check, you begin earning
    dividends on the business day after the Fund receives your check. In either case, you earn dividends through the day your redemption request is received.

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    addition, the Fund pays any capital gains at least annually, and may make such special distributions of dividends and capital gains as may be necessary to meet applicable regulatory requirements. Your dividends and
    capital gains distributions will be automatically reinvested in additional Shares without a sales charge, unless you elect cash payments. Dividends may also be reinvested without sales charges in shares of any class
    of any other Federated fund of which you are already a shareholder.

    If you
    purchase Shares just before the record date for a capital gain distribution, you will pay the full price for the Shares and then receive a portion of the price back in the form of a taxable distribution, whether or
    not you reinvest the distribution in Shares. Therefore, you should consider the tax implications of purchasing Shares shortly before the record date for a capital gain. Contact your financial intermediary or the Fund
    for information concerning when dividends and capital gains will be paid.

    Debajo
    the federal securities laws, the Fund is required to provide a notice to shareholders regarding the source of distributions made by the Fund if such distributions are from sources other than ordinary investment
    income. In addition, important information regarding the Fund's distributions, if applicable, is available via the link to the Fund and share class name at www.FederatedInvestors.com/FundInformation.

    Small Distributions and Uncashed
    Checks

    Generally, dividend and/or capital gain distributions payable by check in an amount of less than $25 will be automatically reinvested in additional shares. This policy does not apply if you have elected to receive
    cash distributions that are directly deposited into your bank account via wire or ACH.

    Additionally, if one or more dividend or capital gain distribution checks are returned as “undeliverable,” or remain uncashed for 180 days, all subsequent dividend and capital gain distributions will be
    reinvested in additional shares. No interest will accrue on amounts represented by uncashed distribution checks. For questions on whether reinvestment applies to your distributions, please contact a Client Service
    Representative at 1-800-341-7400.

    Certain
    states, including the state of Texas, have laws that allow shareholders to designate a representative to receive abandoned or unclaimed property (“escheatment”) notifications by completing and submitting a
    designation form that generally can be found on the official state website. If a shareholder resides in an applicable state, and elects to designate a representative to receive escheatment notifications, escheatment
    notices generally will be delivered as required by such state laws, including, as applicable, to both the shareholder and the designated representative. A completed designation form may be mailed to the Fund (if
    Shares are held directly with the Fund) or to the shareholder's financial intermediary (if Shares are not held directly with the Fund). Shareholders should refer to relevant state law for the shareholder's specific
    rights and responsibilities under his or her state's escheatment law(s), which can generally be found on a state's official website.




    ACCOUNTS WITH LOW BALANCES

    Federated reserves the right to close accounts if redemptions or exchanges cause the account balance to fall below $25,000 for the IS Class. Before an account is closed, you will be notified and allowed at least 30
    days to purchase additional Shares to meet the minimum.

    TAX INFORMATION

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    Fund sends an IRS Form 1099 and an annual statement of your account activity to assist you in completing your federal, state and local tax returns. Fund distributions of dividends and capital gains are taxable to you
    whether paid in cash or reinvested in the Fund. Dividends are taxable at different rates depending on the source of dividend income. Distributions of net short-term capital gains are taxable to you as ordinary income.
    Distributions of net long-term capital gains are taxable to you as long-term capital gains regardless of how long you have owned your Shares.

    Fund
    distributions are expected to be primarily dividends. Redemptions and exchanges are taxable sales. Please consult your tax adviser regarding your federal, state and local tax liability.

    FREQUENT TRADING POLICIES

    Frequent or short-term trading into and out of the Fund can have adverse consequences for the Fund and shareholders who use the Fund as a long-term investment vehicle. Such trading in significant amounts can disrupt
    the Fund's investment strategies (e.g., by requiring it to sell investments at inopportune times or maintain excessive short-term or cash positions to support redemptions), increase brokerage and administrative costs
    and affect the timing and amount of taxable gains distributed by the Fund. Investors engaged in such trading may also seek to profit by anticipating changes in the Fund's NAV in advance of the time as of which NAV is
    calculated or through an overall strategy to buy and sell Shares in response to incremental changes in the Fund's NAV.

    The Fund's Board has approved policies and procedures intended to discourage excessive frequent or short-term trading of the Fund's Shares. The Fund's fair valuation procedures are intended in
    part to discourage short-term trading strategies by reducing the potential for these strategies to succeed. See “What Do Shares Cost?” The Fund also monitors trading in Fund Shares in an effort to identify
    disruptive trading activity. The Fund monitors trades into and out of the Fund within a period of 30 days or less. The Fund may also monitor trades into and out of the Fund for potentially disruptive trading activity
    over periods longer than 30 days. The size of Share transactions subject to monitoring varies. Where it is determined that a shareholder has exceeded the detection amounts twice within a period of 12 months, the Fund
    will temporarily prohibit the shareholder from making further purchases or exchanges of Fund Shares. If the shareholder continues to exceed the detection amounts for specified periods the Fund will impose lengthier
    trading restrictions on the shareholder, up to and including permanently prohibiting the shareholder from making any further purchases or exchanges of Fund Shares. Whether or not the specific monitoring limits are
    exceeded, the Fund's management or the Adviser may determine from the amount, frequency or pattern of purchases and redemptions or exchanges that a shareholder is engaged in excessive trading that is or could be
    detrimental to the Fund and other shareholders and may prohibit the shareholder from making further purchases or exchanges of Fund Shares. No matter how the Fund defines its limits on frequent trading of Fund Shares,
    other purchases and sales of Fund Shares may have adverse effects on the management of the Fund's portfolio and its performance.

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    Fund's frequent trading restrictions do not apply to purchases and sales of Fund Shares by other Federated funds. These funds impose the same frequent trading restrictions as the Fund at their shareholder level. En
    addition, allocation changes of the investing Federated fund are monitored, and the managers of the recipient fund must determine that there is no disruption to their management activity. The intent of this exception
    is to allow investing fund managers to accommodate cash flows and other activity that result from non-abusive trading in the investing fund, without being stopped from such trading because the aggregate of such trades
    exceeds the monitoring limits. Nonetheless, as with any trading in Fund Shares, purchases and redemptions of Fund Shares by other Federated funds could adversely affect the management of the Fund's portfolio and its
    performance.

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    Fund will not restrict transactions made on a non-discretionary basis by certain asset allocation programs, wrap programs, fund of funds, collective funds or other similar accounts that have been pre-approved by
    Federated (“Approved Accounts”). The Fund will continue to monitor transactions by the Approved Accounts and will seek to limit or restrict even non-discretionary transactions by Approved Accounts that are
    determined to be disruptive or harmful to the Fund.

    The Fund's objective is that its restrictions on short-term trading should apply to all shareholders that are subject to the restrictions, regardless of the number or type of accounts in which
    Shares are held. However, the Fund anticipates that limitations on its ability to identify trading activity to specific shareholders, including where shares are held through intermediaries in multiple or omnibus
    accounts, will mean that these restrictions may not be able to be applied uniformly in all cases.




    Otro
    funds in the Federated family of funds may impose different monitoring policies or in some cases, may not monitor for frequent or short-term trading. Under normal market conditions such monitoring policies are
    designed to protect the funds being monitored and their shareholders and the operation of such policies and shareholder investments under such monitoring are not expected to have materially adverse impact on the
    Federated funds or their shareholders. If you plan to exchange your fund shares for shares of another Federated fund, please read the prospectus of that other Federated fund for more information.

    PORTFOLIO HOLDINGS INFORMATION

    Information concerning the Fund's portfolio holdings is available via the link to the Fund and share class name at www.FederatedInvestors.com/FundInformation. A complete listing of the Fund's portfolio holdings as
    of the end of each month is posted on the website 15 days (or the next business day) after the end of the month and remains posted for six months thereafter. Summary portfolio composition information as of the close
    of each month is posted on the website 15 days (or the next business day) after month-end and remains posted until replaced by the information for the succeeding month. The summary portfolio composition information
    may include identification of the Fund's top 10 holdings and a percentage breakdown of the portfolio by sector.

    You may also access portfolio information as of the end of the Fund's fiscal quarters via the link to the Fund and share class name at www.FederatedInvestors.com. The Fund's Annual and
    Semi-Annual Shareholder Reports contain complete listings of the Fund's portfolio holdings as of the end of the Fund's second and fourth fiscal quarters. Fiscal quarter information is made available on the website
    within 70 days after the end of the fiscal quarter. This information is also available in reports filed with the SEC at the SEC's website at www.sec.gov.

    Each
    fiscal quarter, the Fund will file with the SEC a complete schedule of its monthly portfolio holdings on “Form N-PORT.” The Fund's holdings as of the end of the third month of every fiscal quarter, as
    reported on Form N-PORT, will be publicly available on the SEC's website at www.sec.gov within 60 days of the end of the fiscal quarter upon filing. You may also access this information via the link to the Fund and
    share class name at www.FederatedInvestors.com.

    En
    addition, from time to time (for example, during periods of unusual market conditions), additional information regarding the Fund's portfolio holdings and/or composition may be posted to Federated's website. If and
    when such information is posted, its availability will be noted on, and the information will be accessible from, the home page of the website.

    Who Manages the Fund?

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    Board governs the Fund. The Board selects and oversees the Adviser, Federated Investment Management Company. The Adviser manages the Fund's assets, including buying and selling portfolio securities. Federated Advisory
    Services Company (FASC), an affiliate of the Adviser, provides certain support services to the Adviser. The fee for these services is paid by the Adviser and not by the Fund. The address of the Adviser and FASC is
    Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA 15222-3779.

    The Adviser and other subsidiaries of Federated advise approximately 102 equity, fixed-income and money market mutual funds as well as a variety of other pooled investment vehicles, private
    investment companies and customized separately managed accounts (including non-U.S./offshore funds) which totaled approximately $459.9 billion in assets as of December 31, 2018. Federated was established in 1955 and
    is one of the largest investment managers in the United States with nearly 1,900 employees. Federated provides investment products to approximately 9,500 investment professionals and institutions.

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    Adviser advises approximately 76 fixed-income and money market mutual funds (including sub-advised funds) and private investment companies, which totaled approximately $264.8 billion in assets as of December 31,
    2018.

    PORTFOLIO MANAGEMENT
    INFORMATION

    Mark E. Durbiano

    Mark E.
    Durbiano, CFA, Senior Portfolio Manager, has been the Fund's portfolio manager since its inception November of 2002.

    Mr. Durbiano is a Senior Portfolio Manager, Head of the Domestic High Yield Group and Chairman of the Bond Sector Committee. He is responsible for day to day management of the Fund focusing on
    asset allocation and security selection. He has been with Federated since 1982; has worked in investment management since 1982; has managed investment portfolios since 1984. Education: B.A., Dickinson College; M.B.A.,
    University of Pittsburgh.

    Steven J. Wagner

    Steven
    J. Wagner, Senior Portfolio Manager, has been the Fund's portfolio manager since December of 2017.




    Mr. Wagner, a Senior Portfolio Manager, is responsible for providing research and advice on sector allocation and security selection. He has been with Federated since 1997; has worked in
    investment management since 1997; has managed investment portfolios since 2011. Education; B.S., Boston College; M.B.A., University of Pittsburgh.

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    Fund's SAI provides additional information about the Portfolio Manager's compensation, management of other accounts and ownership of securities in the Fund.

    ADVISORY FEES

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    Fund's investment advisory contract provides for payment to the Adviser of an annual investment advisory fee of 0.40% of the Fund's average daily net assets. The Adviser may voluntarily waive a portion of its fee or
    reimburse the Fund for certain operating expenses. The Adviser and its affiliates have also agreed to certain “Fee Limits” as described in the “Risks/Return Summary Fees and Expenses” table
    found in the “Fund Summary” section of the Prospectus.

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    discussion of the Board's review of the Fund's investment advisory contract is available in the Fund's annual and semi-annual shareholder reports for the periods ended October 31 and April 30, respectively.

    Financial Information

    FINANCIAL HIGHLIGHTS

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    Financial Highlights will help you understand the Fund's financial performance for its past five fiscal years. Some of the information is presented on a per Share basis. Total returns represent the rate an investor
    would have earned (or lost) on an investment in the Fund, assuming reinvestment of any dividends and capital gains.

    This
    information has been audited by Ernst & Young LLP, an independent registered public accounting firm, whose report, along with the Fund's audited financial statements, is included in the Annual Report.




    Financial Highlights–Institutional Shares

    (For a Share Outstanding
    Throughout Each Period)

    Year Ended October 31 2019 2018 2017 2016 2015
    Net Asset Value, Beginning of Period $9.56 $10.09 $9.84 $9.61 $10.18
    Income From Investment Operations:
    Net investment income (loss) 0.56 0.56 0.56 0.57 0.59
    Net realized and unrealized gain (loss) 0.24 (0.52) 0.25 0.23 (0.55)
    TOTAL FROM INVESTMENT OPERATIONS 0.80 0.04 0.81 0.80 0.04
    Less Distributions:
    Distributions from net investment income (0.58) (0.57) (0.56) (0.57) (0.59)
    Distributions from net realized gain – – – – (0.02)
    TOTAL DISTRIBUTIONS (0.58) (0.57) (0.56) (0.57) (0.61)
    Redemption Fees 0.001 0.001 0.001 0.001 0.001
    Net Asset Value, End of Period $9.78 $9.56 $10.09 $9.84 $9.61
    Total Return2 8.60% 0.39% 8.38% 8.76% 0.47%
    Ratios to Average Net Assets:
    Net expenses 0.49% 0.49% 0.49% 0.49% 0.49%
    Net investment income 5.77% 5.66% 5.62% 6.01% 5.81%
    Expense waiver/reimbursement3 0.05% 0.06% 0.08% 0.08% 0.07%
    Supplemental Data:
    Net assets, end of period (000 omitted) $5,773,584 $5,037,890 $5,588,643 $5,411,907 $4,276,989
    Portfolio turnover 26% 22% 23% 23% 24%
    1 Represents less than $0.01.
    2 Based on net asset value.
    3 This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

    Further information about the Fund's
    performance is contained in the Fund's Annual Report, dated October 31, 2019, which can be obtained free of charge.




    Financial Highlights–Class R6 Shares

    (For a Share Outstanding
    Throughout Each Period)

    Year Ended October 31, Period
    Ended
    10/31/20161
    2019 2018 2017
    Net Asset Value, Beginning of Period $9.56 $10.10 $9.84 $9.44
    Income From Investment Operations:
    Net investment income (loss) 0.56 0.56 0.55 0.19
    Net realized and unrealized gain (loss) 0.25 (0.53) 0.27 0.40
    TOTAL FROM INVESTMENT OPERATIONS 0.81 0.03 0.82 0.59
    Less Distributions:
    Distributions from net investment income (0.58) (0.57) (0.56) (0.19)
    Redemption Fees 0.002 0.002 0.002 0.002
    Net Asset Value, End of Period $9.79 $9.56 $10.10 $9.84
    Total Return3 8.72% 0.30% 8.49% 6.27%
    Ratios to Average Net Assets:
    Net expenses 0.48% 0.48% 0.49% 0.48%4
    Net investment income 5.80% 5.67% 5.56% 5.75%4
    Expense waiver/reimbursement5 5 0.02% 0.02% 0.03% 0.04%4
    Supplemental Data:
    Net assets, end of period (000 omitted) $1,142,761 $1,491,634 $1,272,467 $46,470
    Portfolio turnover 26% 22% 23% 23%6
    1 Reflects operations for the period from June 29, 2016 (date of initial investment) to October 31, 2016.
    2 Represents less than $0.01.
    3 Based on net asset value. Total returns for periods of less than one year are not annualized.
    4 Computed on an annualized basis.
    5 5 This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
    6 Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended October 31, 2016.

    Further
    information about the Fund's performance is contained in the Fund's Annual Report, dated October 31, 2019, which can be obtained free of charge.




    Appendix A: Hypothetical Investment and
    Expense Information

    The following charts provide additional hypothetical information about the effect of the Fund's expenses, including investment advisory fees and other Fund costs, on the Fund's assumed returns
    over a 10-year period. The charts show the estimated expenses that would be incurred in respect of a hypothetical investment, of $10,000, assuming a 5% return each year, and no redemption of Shares. Each chart also
    assumes that the Fund's annual expense ratio stays the same throughout the 10-year period and that all dividends and distributions are reinvested. The annual expense ratio used in each chart is the same as stated in
    the “Fees and Expenses” table of this Prospectus (and thus may not reflect any fee waiver or expense reimbursement currently in effect). The maximum amount of any sales charge that might be imposed on the compra of Shares (and deducted from the hypothetical initial investment of $10,000; the “Front-End Sales Charge”) is reflected in the “Hypothetical Expenses”
    columna. The hypothetical investment information does not reflect the effect of charges (if any) normally applicable to redemptions of Shares (e.g., deferred sales charges, redemption fees). Mutual fund returns, as well as fees and expenses, may fluctuate over time, and your actual investment returns
    and total expenses may be higher or lower than those shown below.

    FEDERATED INSTITUTIONAL HIGH YIELD BOND FUND – IS CLASS
    ANNUAL EXPENSE RATIO: 0.55%
    MAXIMUM FRONT-END SALES CHARGE: NONE
    Año Hypothetical
    Beginning
    Investment
    Hypothetical
    Performance
    Earnings
    Investment
    Después
    Returns
    Hypothetical
    Expenses
    Hypothetical
    Ending
    Investment
    1 $10,000.00 $500.00 $10,500.00 $56.22 $10,445.00
    2 $10,445.00 $522.25 $10,967.25 $58.73 $10,909.80
    3 $10,909.80 $545.49 $11,455.29 $61.34 $11,395.29
    4 $11,395.29 $569.76 $11,965.05 $64.07 $11,902.38
    5 5 $11,902.38 $595.12 $12,497.50 $66.92 $12,432.04
    6 $12,432.04 $621.60 $13,053.64 $69.90 $12,985.27
    7 $12,985.27 $649.26 $13,634.53 $73.01 $13,563.11
    8 $13,563.11 $678.16 $14,241.27 $76.26 $14,166.67
    9 $14,166.67 $708.33 $14,875.00 $79.65 $14,797.09
    10 $14,797.09 $739.85 $15,536.94 $83.19 $15,455.56
    Cumulative $6,129.82 $689.29
    FEDERATED INSTITUTIONAL HIGH YIELD BOND FUND – R6 CLASS
    ANNUAL EXPENSE RATIO: 0.51%
    MAXIMUM FRONT-END SALES CHARGE: NONE
    Año Hypothetical
    Beginning
    Investment
    Hypothetical
    Performance
    Earnings
    Investment
    Después
    Returns
    Hypothetical
    Expenses
    Hypothetical
    Ending
    Investment
    1 $10,000.00 $500.00 $10,500.00 $52.14 $10,449.00
    2 $10,449.00 $522.45 $10,971.45 $54.49 $10,918.16
    3 $10,918.16 $545.91 $11,464.07 $56.93 $11,408.39
    4 $11,408.39 $570.42 $11,978.81 $59.49 $11,920.63
    5 5 $11,920.63 $596.03 $12,516.66 $62.16 $12,455.87
    6 $12,455.87 $622.79 $13,078.66 $64.95 $13,015.14
    7 $13,015.14 $650.76 $13,665.90 $67.87 $13,599.52
    8 $13,599.52 $679.98 $14,279.50 $70.91 $14,210.14
    9 $14,210.14 $710.51 $14,920.65 $74.10 $14,848.18
    10 $14,848.18 $742.41 $15,590.59 $77.43 $15,514.86
    Cumulative $6,141.26 $640.47



    An SAI
    dated December 31, 2019, is incorporated by reference into this Prospectus. Additional information about the Fund and its investments is contained in the Fund's SAI and Annual and Semi-Annual Reports to shareholders
    as they become available. The Annual Report's Management's Discussion of Fund Performance discusses market conditions and investment strategies that significantly affected the Fund's performance during its last fiscal
    year. The SAI contains a description of the Fund's policies and procedures with respect to the disclosure of its portfolio securities. To obtain the SAI, Annual Report, Semi-Annual Report and other information without
    charge, and to make inquiries, call your financial intermediary or the Fund at 1-800-341-7400.

    These documents, as well
    as additional information about the Fund (including portfolio holdings, performance and distributions), are also available on Federated's website at FederatedInvestors.com.

    You can obtain
    information about the Fund (including the SAI) by accessing Fund information from the EDGAR Database on the SEC's website at www.sec.gov. You can purchase copies of this information by contacting the SEC by email at
    publicinfo@sec.gov.

    Federated Institutional High Yield
    Bond Fund
    Federated Investors Funds
    4000 Ericsson Drive
    Warrendale, PA 15086-7561

    Contact us at FederatedInvestors.com
    or call 1-800-341-7400.

    Federated Securities Corp.,
    Distributor

    Investment Company Act File No.
    811-7193

    CUSIP 31420B300
    CUSIP 31420B847

    27831 (12/19)

    Federated is a registered trademark
    of Federated Investors, Inc.
    2019 ©Federated Investors, Inc.

    Statement of Additional
    Information

    December 31, 2019

    Share Class El | Ticker Institutional El | FIHBX R6 El | FIHLX

    Federated Institutional
    High Yield Bond Fund


    A Portfolio of Federated
    Institutional Trust

    This
    Statement of Additional Information (SAI) is not a Prospectus. Read this SAI in conjunction with the Prospectus for Federated Institutional High Yield Bond Fund (the “Fund”), dated December 31, 2019.

    This SAI incorporates by
    reference the Fund's Annual Report. Obtain the Prospectus or the Annual Report without charge by calling 1-800-341-7400.

    Federated Institutional High Yield
    Bond Fund
    Federated Investors Funds
    4000 Ericsson Drive
    Warrendale, PA 15086-7561

    Contact us at FederatedInvestors.com
    or call 1-800-341-7400.

    Federated Securities Corp.,
    Distributor

    27914 (12/19)

    Federated is a registered
    trademark
    of Federated Investors, Inc.
    2019 ©Federated Investors, Inc.




    How is
    the Fund Organized?

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    Fund is a diversified portfolio of Federated Institutional Trust (the “Trust”). The Trust is an open-end, management investment company that was established under the laws of the Commonwealth of
    Massachusetts on June 9, 1994. The Trust may offer separate series of shares representing interests in separate portfolios of securities. The Fund's shares were redesignated as Institutional Shares effective December
    31, 2007.

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    Board of Trustees has established two classes of shares of the Fund, known as Institutional Shares and Class R6 Shares (“Shares”). This SAI relates to both classes of Shares. The Fund's investment adviser
    is Federated Investment Management Company (the “Adviser”).

    Securities in Which the
    Fund Invests

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    principal securities or other investments in which the Fund invests are described in the Fund's Prospectus. The Fund also may invest in securities or other investments as non-principal investments for any purpose that
    is consistent with its investment objective. The following information is either additional information in respect of a principal security or other investment referenced in the Prospectus or information in respect of
    a non-principal security or other investment (in which case there is no related disclosure in the Prospectus).

    Securities Descriptions and
    Techniques

    Fixed-Income Securities

    Fixed-income securities pay interest, dividends or distributions at a specified rate. The rate may be a fixed percentage of the principal or may be adjusted periodically. In addition, the issuer of a fixed-income
    security must repay the principal amount of the security, normally within a specified time. Fixed-income securities provide more regular income than equity securities. However, the returns on fixed-income securities
    are limited and normally do not increase with the issuer's earnings. This limits the potential appreciation of fixed-income securities as compared to equity securities.

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    security's yield measures the annual income earned on a security as a percentage of its price. A security's yield will increase or decrease depending upon whether it costs less (a “discount”) or more (a
    “premium”) than the principal amount. If the issuer may redeem the security before its scheduled maturity, the price and yield on a discount or premium security may change based upon the probability of an
    early redemption. Securities with higher risks generally have higher yields.

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    following describes the types of fixed-income securities in which the Fund invests.

    Loan Instruments (A Fixed-Income
    Security)

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    Fund may invest in loans and loan-related instruments, which are generally interests in amounts owed by a corporate, governmental, or other borrower to lenders or groups of lenders known as lending syndicates (loans
    and loan participations). Such instruments include, but are not limited to, interests in trade finance loan transactions, pre-export/import finance transactions, factoring, syndicated loan transactions and forfaiting
    transactions.

    Trade
    finance refers generally to loans made to producers, sellers, importers and/or exporters in relation to commodities, goods, or services. Such loans typically have short-to-medium term maturities and will generally be
    self-liquidating (i.e., as the goods or commodities are sold, proceeds from payments for such goods or commodities are used to pay the principal on the loan prior to being distributed to the borrower). These trade
    finance structures are subject to significant individual variation but typical structures may include but not be limited to the following:

    Buyer's
    credit. An extension of credit typically made by a bank to a buyer of goods (i.e.: importer) to finance the purchase of goods under a commercial contract of sale.

    Contract
    frustration and trade credit indemnity. An insurance policy issued by an insurer in favor of an insured (typically a supplier or a bank) that provides conditional coverage to the insured against loss incurred as a result of
    non-payment/non delivery by an obligor involved in a trade transaction.

    Cross
    border leases. Cross border leases, often structured with insignificant residual value.

    Exportar
    credit agency financing. A loan where an export credit agency acts as lender, co-lender or guarantor.

    Import
    finance. An extension of credit made to an importer that finances his imports.

    Inventory
    finance. An extension of credit made to a borrowing entity (be it an importer or exporter) secured against the physical inventory held and owned by that borrower. The inventory may be held in a
    warehouse.

    Letter of
    Credit (L/C). A written undertaking, or obligation, of a bank made at the request of its customer (usually an importer) to honor or pay an exporter against presentation of trade documents that comply
    with terms specified in the letter of credit.




    Multilateral agency financing. A loan where a multilateral agency acts as either a lender or a co-lender. Such a loan may benefit from preferred creditor status in the event of shortages of foreign exchange that may be
    experienced by sovereign governments.

    Pre-export finance. An extension of credit to an exporter before export of the goods has taken place. This can be secured against the subject goods or sales proceeds, or unsecured.

    Prepayment agreement. An extension of credit to an exporter where the source of pay-back is through the future export of goods. The difference between Pre-export finance and a Prepayment agreement is that the
    latter arrangement may involve the buyer of the goods as a contractual party and is in effect a payment for goods in advance of delivery.

    Promissory notes, bills of exchange and other forms of negotiable instrument. A written promise to pay issued by (or drawn on) an obligor in favor of a beneficiary.

    Receivables. Receivables or flows of receivables created in consideration for the transfer of goods and services.

    Supplier
    Credit. An extension of credit made by a supplier (or exporter) to an importer to finance a purchase of goods. Banks or other lenders may purchase or participate in the credit instrument if the
    instrument permits transfer.

    Trade
    finance related loans and other loan assignments and participations. The Fund expects primarily to purchase trade finance loans and other loans by assignment, transfer or novation from a participant in the original syndicate of lenders or from subsequent
    holders of such interests. The Fund may also purchase participations on a primary basis from a mandated lead arranger during the formation of the original syndicate making such loans. See the headings “Loan
    Assignments” and “Loan Participations” below for a complete description of such loan assignments and loan participations.

    Investments in certain loans have additional risks that result from the use of agents and other interposed financial institutions. Such loans are structured and administered by a financial institution (e.g., a
    commercial bank) that acts as the agent of the lending syndicate. The agent bank, which may or may not also be a lender, typically administers and enforces the loan on behalf of the lenders in the lending syndicate.
    In addition, an institution, typically but not always the agent bank, holds the collateral, if any, on behalf of the lenders. A financial institution's employment as an agent bank might be terminated for a number of
    reasons, for example, in the event that it fails to observe a requisite standard of care or becomes insolvent. A successor agent bank would generally be appointed to replace the terminated agent bank, and assets held
    by the agent bank under the loan agreement likely would remain available to holders of such indebtedness. However, if assets held by the agent bank for the benefit of the Fund were determined to be subject to the
    claims of the agent bank's general creditors, the Fund might incur certain costs and delays in realizing payment on a loan or loan participation and could suffer a loss of principal and/or interest. In situations
    involving other interposed financial institutions (e.g., an insurance company or government agency) similar risks may arise.

    Préstamo
    instruments may be secured or unsecured. If secured, then the lenders have been granted rights to specific property, which is commonly referred to as collateral. The purpose of securing loans is to allow the lenders
    to exercise rights over the collateral if a loan is not repaid as required by the terms of the loan agreement. Collateral may include security interests in receivables, goods, commodities, or real property. With
    regard to trade finance loan transactions the collateral itself may be the source of proceeds to repay the loan (i.e., the borrower's ability to repay the loan will be dependent on the borrower's ability to sell, and
    the purchaser's ability to buy, the goods or commodities that are collateral for the loan). Interests in loan instruments may also be tranched or tiered with respect to collateral rights. Unsecured loans expose the
    lenders to increased credit risk.

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    loan instruments in which the Fund may invest may involve borrowers, agent banks, co-lenders and collateral located both in the United States and outside of the United States (in both developed and emerging
    markets).

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    Fund treats loan instruments as a type of fixed-income security. Investments in loan instruments may expose the Fund to interest rate risk, risks of investing in foreign securities, credit risk, liquidity risk, risks
    of non-investment grade securities, risks of emerging markets, and leverage risk. (For purposes of the descriptions in this SAI of these various risks, references to “issuer,” include borrowers under loan
    instruments.) Many loan instruments incorporate risk mitigation, credit enhancement (e.g., standby letters of credit) and insurance products into their structures, in order to manage these risks. There is no guarantee
    that these risk management techniques will work as intended.

    Loans
    and loan-related instruments are generally considered to be illiquid due to the length of time required to transfer an interest in a loan or a related instrument. Additionally, in the case of some loans, such as those
    related to trade finance, there is a limited secondary market. The liquidity of a particular loan will be determined by the Adviser under guidelines adopted by the Fund's board.




    Loan Assignments (A Type of Loan
    Instruments)

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    Fund may purchase a loan assignment from the agent bank or other member of the lending syndicate. Investments in loans through an assignment may involve additional risks to the Funds. For example, if a loan is
    foreclosed, a Fund could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. In addition, it is conceivable that under emerging legal
    theories of lender liability, a Fund could be held liable as co-lender. It is unclear whether loans and other forms of direct indebtedness offer securities law protections against fraud and misrepresentation. En el
    absence of definitive regulatory guidance, the Funds rely on the Adviser's research in an attempt to avoid situations where fraud or misrepresentation could adversely affect the Funds.

    Loan Participations (A Type of
    Loan Instrument)

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    Fund may purchase a funded participation interest in a loan, by which the Fund has the right to receive payments of principal, interest and fees from an intermediary (typically a bank, financial institution or lending
    syndicate) that has a direct contractual relationship with a borrower. In loan participations, the Fund does not have a direct contractual relationship with the borrower.

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    Fund may also purchase a type of a participation interest, known as risk participation interest. In this case, the Fund will receive a fee in exchange for the promise to make a payment to a lender if a borrower fails
    to make a payment of principal, interest, or fees, as required by the loan agreement.

    Cuando
    purchasing loan participations, the Fund will be exposed to credit risk of the borrower and, in some cases, the intermediary offering the participation. A participation agreement also may limit the rights of the Fund
    to vote on changes that may be made to the underlying loan agreement, such as waiving a breach of a covenant. The participation interests in which a Fund intends to invest may not be rated by any nationally recognized
    rating service or, if rated, may be below investment grade and expose the Fund to the risks of noninvestment-grade securities.

    Collateralized
    Loan Obligations

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    collateralized loan obligation (CLO) is an asset-backed security whose underlying collateral is a pool of loans. Such loans may include domestic and foreign senior secured loans, senior unsecured loans and subordinate
    corporate loans, some of which may be below investment grade or equivalent unrated loans. Investments in CLOs carry the same risks as investments in loans directly, such as interest rate risk, issuer credit and
    liquidity risks. These investments are also subject to the risks associated with a decrease of market value due to collateral defaults and disappearance of subordinate tranches, market anticipation of defaults and
    investor aversion to these types of securities as a class. CLOs issue classes or “tranches” that vary in risk and yield. Losses caused by defaults on underlying assets are borne first by the holders of
    subordinate tranches. A CLO may experience substantial losses attributable to loan defaults. A Fund's investment in a CLO may decrease in market value because of: (i) loan defaults or credit impairment; (ii) the
    disappearance of subordinate tranches; (iii) market anticipation of defaults; and (iv) investor aversion to CLO securities as a class. These risks may be magnified depending on the tranche of CLO securities in which a
    Fund invests. For example, investments in a junior tranche of CLO securities will likely be more sensitive to loan defaults or credit impairment than investments in more senior tranches.

    Floating Rate Loans

    Floating rate loans are debt instruments issued by companies or other entities with floating interest rates that reset periodically. Most floating rate loans are secured by specific collateral of the borrower and
    are senior to most other instruments of the borrower (e.g., common stock or debt instruments) in the event of bankruptcy. Floating rate loans are often issued in connection with recapitalizations, acquisitions,
    leveraged buyouts and refinancing. Floating rate loans are typically structured and administered by a financial institution that acts as the agent of the lenders participating in the floating rate loan. Floating rate
    loans may be acquired directly through the agent, as an assignment from another lender who holds a direct interest in the floating rate loan, or as a participation interest in another lender's portion of the floating
    rate loan.

    Commercial Paper (A Type of
    Corporate-Debt Security)

    Commercial paper is an issuer's obligation with a maturity of less than nine months. Companies typically issue commercial paper to pay for current expenditures. Most issuers constantly reissue their commercial paper
    and use the proceeds (or “bank loans”) to repay maturing paper. If the issuer cannot continue to obtain liquidity in this fashion, its commercial paper may default. The short maturity of commercial paper
    generally reduces both the market and credit risks as compared to other debt securities of the same issuer.




    Demand Instruments (A Type of
    Corporate-Debt Security)

    Demand
    instruments are corporate securities that require the issuer or a third party, such as a dealer or bank (the Demand Provider), to repurchase the security for its face value upon demand. Some demand instruments are
    “conditional,” so that the occurrence of certain conditions relieves the Demand Provider of its obligation to repurchase the security. Other demand instruments are “unconditional,” so that
    there are no conditions under which the Demand Provider's obligation to repurchase the security can terminate. The fund treats demand instruments as short-term securities, even though their stated maturity may extend
    beyond one year.

    Treasury Securities (A
    Fixed-Income Security)

    Treasury securities are direct obligations of the federal government of the United States. Treasury securities are generally regarded as having minimal credit risks.

    Government Securities (A
    Fixed-Income Security)

    Government securities are issued or guaranteed by a federal agency or instrumentality acting under federal authority. Some government securities, including those issued by Government National Mortgage Association
    (Ginnie Mae), are supported by the full faith and credit of the United States and are guaranteed only as to the timely payment of interest and principal.

    Otro
    government securities receive support through federal subsidies, loans or other benefits but are not backed by the full faith and credit of the United States. For example, the U.S. Treasury is authorized to purchase
    specified amounts of securities issued by (or otherwise make funds available to) the Federal Home Loan Bank System, Federal Home Loan Mortgage Corporation (“Freddie Mac”) and Federal National Mortgage
    Association (“Fannie Mae”) in support of such obligations.

    Algunos
    government agency securities have no explicit financial support and are supported only by the credit of the applicable agency, instrumentality or corporation. The U.S. government has provided financial support to
    Freddie Mac and Fannie Mae, but there is no assurance that it will support these or other agencies in the future.

    Investors regard government securities as having minimal credit risks, but not as low as Treasury securities.

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    Fund treats mortgage-backed securities guaranteed by a federal agency or instrumentality as government securities. Although such a guarantee helps protect against credit risk, it does not eliminate it entirely or
    reduce other risks.

    Additional Information Related To Freddie Mac And Fannie Mae. The extreme and unprecedented volatility and disruption that impacted the capital and credit markets beginning in 2008 led to market concerns regarding the ability of
    Freddie Mac and Fannie Mae to withstand future credit losses associated with securities held in their investment portfolios, and on which they provide guarantees, without the direct support of the federal government.
    On September 7, 2008, Freddie Mac and Fannie Mae were placed under the conservatorship of the Federal Housing Finance Agency (FHFA). Under the plan of conservatorship, the FHFA assumed control of, and generally has
    the power to direct, the operations of Freddie Mac and Fannie Mae, and is empowered to exercise all powers collectively held by their respective shareholders, directors and officers, including the power to: (1) take
    over the assets of and operate Freddie Mac and Fannie Mae with all the powers of the shareholders, the directors and the officers of Freddie Mac and Fannie Mae and conduct all business of Freddie Mac and Fannie Mae;
    (2) collect all obligations and money due to Freddie Mac and Fannie Mae; (3) perform all functions of Freddie Mac and Fannie Mae which are consistent with the conservator's appointment; (4) preserve and conserve the
    assets and property of Freddie Mac and Fannie Mae; and (5) contract for assistance in fulfilling any function, activity, action or duty of the conservator.

    En
    connection with the actions taken by the FHFA, the Treasury has entered into certain preferred stock purchase agreements (SPAs) with each of Freddie Mac and Fannie Mae which establish the Treasury as the holder of a
    new class of senior preferred stock in each of Freddie Mac and Fannie Mae. The senior preferred stock was issued in connection with financial contributions from the Treasury to Freddie Mac and Fannie Mae. Aunque el
    SPAs are subject to amendment from time to time, currently the Treasury is obligated to provide such financial contributions up to an aggregate maximum amount determined by a formula set forth in the SPAs, and until
    such aggregate maximum amount is reached, there is not a specific end date to the Treasury's obligations.

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    future status and role of Freddie Mac and Fannie Mae could be impacted by (among other things) the actions taken and restrictions placed on Freddie Mac and Fannie Mae by the FHFA in its role as conservator, the
    restrictions placed on Freddie Mac's and Fannie Mae's operations and activities under the SPAs, market responses to developments at Freddie Mac and Fannie Mae, downgrades or upgrades in the credit ratings assigned to
    Freddie Mac and Fannie Mae by nationally recognized statistical rating organizations (NRSROs) or ratings services, and future legislative and regulatory action that alters the operations, ownership, structure and/or
    mission of these institutions, each of which may, in turn, impact the value of, and cash flows on, any securities guaranteed by Freddie Mac and Fannie Mae.




    En
    addition, the future of Freddie Mac and Fannie Mae, and other U.S. government-sponsored enterprises that are not backed by the full faith and credit of the U.S. government (GSEs), remains in question as the U.S.
    government continues to consider options ranging from structural reform, nationalization, privatization, or consolidation, to outright elimination. The issues that have led to significant U.S. government support for
    Freddie Mac and Fannie Mae have sparked serious debate regarding the continued role of the U.S. government in providing mortgage loan liquidity.

    IOs and POs (Types of Asset
    Backed-Securities)

    CMOs
    may allocate interest payments to one class (Interest Only or IOs) and principal payments to another class (Principal Only or POs). POs increase in value when prepayment rates increase. In contrast, IOs decrease in
    value when prepayments increase, because the underlying mortgages generate less interest payments. However, IOs tend to increase in value when interest rates rise (and prepayments decrease), making IOs a useful hedge
    against interest rate risks.

    Floaters and Inverse Floaters
    (Types of Asset-Backed Securities)

    Another
    variant allocates interest payments between two classes of CMOs. One class (Floaters) receives a share of interest payments based upon a market index such as the London Interbank Offered Rate (LIBOR). The other class
    (Inverse Floaters) receives any remaining interest payments from the underlying mortgages. Floater classes receive more interest (and Inverse Floater classes receive correspondingly less interest) as interest rates
    rise. This shifts prepayment and interest rate risks from the Floater to the Inverse Floater class, reducing the price volatility of the Floater class and increasing the price volatility of the Inverse Floater
    class.

    Bank Instruments (A Fixed-Income
    Security)

    Banco
    instruments are unsecured interest bearing deposits with banks. Bank instruments include, but are not limited to, bank accounts, time deposits, certificates of deposit and banker's acceptances. Yankee instruments are
    denominated in U.S. dollars and issued by U.S. branches of foreign banks. Eurodollar instruments are denominated in U.S. dollars and issued by non-U.S. branches of U.S. or foreign banks.

    Credit Enhancement

    Crédito
    enhancement consists of an arrangement in which a company agrees to pay amounts due on a fixed-income security if the issuer defaults. In some cases the company providing credit enhancement makes all payments directly
    to the security holders and receives reimbursement from the issuer. Normally, the credit enhancer may have greater financial resources and liquidity than the issuer. For this reason, the Adviser may evaluate the
    credit risk of a fixed-income security based solely upon its credit enhancement.

    Common
    types of credit enhancement include guarantees, letters of credit, bond insurance and surety bonds. Credit enhancement also includes arrangements where securities or other liquid assets secure payment of a
    fixed-income security. If a default occurs, these assets may be sold and the proceeds paid to security's holders. Either form of credit enhancement reduces credit risks by providing another source of payment for a
    fixed-income security.

    Equity Securities

    Equity
    securities represent a share of an issuer's earnings and assets, after the issuer pays its liabilities. The Fund cannot predict the income it will receive from equity securities because issuers generally have
    discretion as to the payment of any dividends or distributions. However, equity securities offer greater potential for appreciation than many other types of securities, because their value increases directly with the
    value of the issuer's business.

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    following describes the types of equity securities in which the Fund may invest.

    Common Stocks

    Common
    stocks are the most prevalent type of equity security. Common stocks receive the issuer's earnings after the issuer pays its creditors and any preferred stockholders. As a result, changes in an issuer's earnings
    directly influence the value of its common stock.

    Interests in Other Limited
    Liability Companies

    Entities such as limited partnerships, limited liability companies, business trusts and companies organized outside the United States may issue securities comparable to common or preferred stock.

    Real Estate Investment Trusts
    (REITs)

    REITs are real estate investment trusts that lease, operate and finance commercial real estate. REITs are exempt from federal corporate income tax if they limit their operations and distribute
    most of their income. Such tax requirements limit a REIT's ability to respond to changes in the commercial real estate market.




    Warrants

    Warrants give the Fund the option to buy the issuer's equity securities at a specified price (the “exercise price”) at a specified future date (the “expiration date”). The Fund may buy the
    designated securities by paying the exercise price before the expiration date. Warrants may become worthless if the price of the stock does not rise above the exercise price by the expiration date. This increases the
    market risks of warrants as compared to the underlying security. Rights are the same as warrants, except companies typically issue rights to existing stockholders.

    Asset-Backed Securities (A Type of
    Fixed-Income Security)

    Asset-backed securities are payable from pools of obligations other than mortgages. Most asset-backed securities involve consumer or commercial debts with maturities of less than 10 years. However, almost any type
    of fixed-income assets (including other fixed-income securities) may be used to create an asset-backed security. Asset-backed securities may take the form of notes or pass-through certificates.

    Foreign Government Securities (A
    Type of Foreign Fixed-Income Security)

    Foreign
    government securities generally consist of fixed-income securities supported by national, state or provincial governments or similar political subdivisions. Foreign government securities also include debt obligations
    of supranational entities, such as international organizations designed or supported by governmental entities to promote economic reconstruction or development, international banking institutions and related
    government agencies. Examples of these include, but are not limited to, the International Bank for Reconstruction and Development (the “World Bank”), the Asian Development Bank, the European Investment
    Bank and the Inter-American Development Bank.

    Foreign
    government securities also include fixed-income securities of quasi-governmental agencies that are either issued by entities owned by a national, state or equivalent government or are obligations of a political unit
    that are not backed by the national government's full faith and credit. Further, foreign government securities include mortgage-related securities issued or guaranteed by national, state or provincial governmental
    instrumentalities, including quasi-governmental agencies.

    Depositary Receipts (A Type of
    Foreign Equity Security)

    Depositary receipts represent interests in underlying securities issued by a foreign company. Depositary receipts are not traded in the same market as the underlying security. The foreign securities underlying
    American Depositary Receipts (ADRs) are traded outside the United States. ADRs provide a way to buy shares of foreign-based companies in the United States rather than in overseas markets. ADRs are also traded in U.S.
    dollars, eliminating the need for foreign exchange transactions. The foreign securities underlying European Depositary Receipts (EDRs), Global Depositary Receipts (GDRs) and International Depositary Receipts (IDRs),
    are traded globally or outside the United States. Depositary receipts involve many of the same risks of investing directly in foreign securities, including currency risks and risks of foreign investing.

    Derivative Contracts

    Derivative contracts are financial instruments that require payments based upon changes in the values of designated securities, commodities, currencies, indices, or other assets or instruments including other
    derivative contracts, (each a “Reference Instrument” and collectively, “Reference Instruments”). Each party to a derivative contract may sometimes be referred to as a counterparty. Algunos
    derivative contracts require payments relating to an actual, future trade involving the Reference Instrument. These types of derivatives are frequently referred to as “physically settled” derivatives.
    Other derivative contracts require payments relating to the income or returns from, or changes in the market value of, a Reference Instrument. These types of derivatives are known as “cash-settled”
    derivatives, since they require cash payments in lieu of delivery of the Reference Instrument.

    Many
    derivative contracts are traded on securities or commodities exchanges. In this case, the exchange sets all the terms of the contract except for the price. Investors make payments due under their contracts through the
    exchange. Most exchanges require investors to maintain margin accounts through their brokers to cover their potential obligations to the exchange. Parties to the contract make (or collect) daily payments to the margin
    accounts to reflect losses (or gains) in the value of their contracts. This protects investors against potential defaults by the other party to the contract. Trading contracts on an exchange also allows investors to
    close out their contracts by entering into offsetting contracts.

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    example, the Fund could close out an open contract to buy an asset at a future date by entering into an offsetting contract to sell the same asset on the same date. If the offsetting sale price is more than the
    original purchase price, the Fund realizes a gain; if it is less, the Fund realizes a loss. Exchanges may limit the amount of open contracts permitted at any one time. Such limits may prevent the Fund from closing out
    a position. If this happens, the Fund will be required to keep the contract open (even if it is losing money on the contract), and to make any payments required under the contract (even if it has to sell portfolio
    securities at unfavorable prices to do so). Inability to close out a contract could also harm the Fund by preventing it from disposing of or trading any assets it has been using to secure its obligations under the
    contract.




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    Fund may also trade derivative contracts over-the-counter (OTC) in transactions negotiated directly between the Fund and a financial institution. OTC contracts do not necessarily have standard terms, so they may be
    less liquid and more difficult to close-out than exchange-traded contracts. In addition, OTC contracts with more specialized terms may be more difficult to value than exchange-traded contracts, especially in times of
    financial stress.

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    market for swaps and other OTC derivatives was largely unregulated prior to the enactment of federal legislation known as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank
    Act”). Regulations enacted by the Commodity Futures Trading Commission (the CFTC) under the Dodd-Frank Act require the Fund to clear certain swap contracts through a clearing house or central counterparty (a
    CCP).

    To
    clear a swap through the CCP, the Fund will submit the contract to, and post margin with, a futures commission merchant (FCM) that is a clearing house member. The Fund may enter into the swap with a financial
    institution other than the FCM and arrange for the contract to be transferred to the FCM for clearing, or enter into the contract with the FCM itself. If the Fund must centrally clear a transaction, the CFTC's
    regulations also generally require that the swap be executed on a registered exchange or through a market facility that is known as a swap execution facility or SEF. Central clearing is presently required only for
    certain swaps, and the CFTC is expected to impose a mandatory central clearing requirement for additional derivative instruments over time.

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    CCP, SEF and FCM are all subject to regulatory oversight by the CFTC. In addition, most derivative market participants are now regulated as swap dealers or major swap participants and are subject to certain minimum
    capital and margin requirements and business conduct standards. Similar regulatory requirements are expected to apply to derivative contracts that are subject to the jurisdiction of the SEC, although the SEC has not
    yet finalized its regulations. In addition, uncleared OTC swaps will be subject to regulatory collateral requirements that could adversely affect the Fund's ability to enter into swaps in the OTC market. These
    developments could cause the Fund to terminate new or existing swap agreements or to realize amounts to be received under such instruments at an inopportune time.

    Until
    the mandated rulemaking and regulations are implemented completely, it will not be possible to determine the complete impact of the Dodd-Frank Act and related regulations on the Fund.

    Depending on how the Fund uses derivative contracts and the relationships between the market value of a derivative contract and the Reference Instrument, derivative contracts may increase or decrease the Fund's
    exposure to the risks of the Reference Instrument, and may also expose the Fund to liquidity and leverage risks. OTC contracts also expose the Fund to credit risks in the event that a counterparty defaults on the
    contract, although this risk may be mitigated by submitting the contract for clearing through a CCP.

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    Fund may invest in a derivative contract if it is permitted to own, invest in, or otherwise have economic exposure to the Reference Instrument. The Fund is not required to own a Reference Instrument in order to buy or
    sell a derivative contract relating to that Reference Instrument. The Fund may trade in the following specific types and/or combinations of derivative contracts:

    Futures Contracts (A Type of
    Derivative)

    Futures
    contracts provide for the future sale by one party and purchase by another party of a specified amount of a Reference Instrument at a specified price, date and time. Entering into a contract to buy a Reference
    Instrument is commonly referred to as buying a contract or holding a long position in the asset. Entering into a contract to sell a Reference Instrument is commonly referred to as selling a contract or holding a short
    position in the Reference Instrument. Futures contracts are considered to be commodity contracts. The Adviser has claimed an exclusion from the definition of the term “commodity pool operator” under the
    Commodity Exchange Act with respect to the Fund and, therefore, is not subject to registration or regulation with respect to the Fund. Futures contracts traded OTC are frequently referred to as forward contracts. los
    Fund can buy or sell financial futures (such as interest rate futures, index futures and security futures), as well as, currency futures and currency forward contracts.

    Interest Rate Futures

    Un
    interest-rate futures contract is an exchange-traded contract for which the Reference Instrument is an interest-bearing fixed income security or an inter-bank deposit. Two examples of common interest rate futures
    contracts are U.S. Treasury futures contracts and Eurodollar futures contracts. The Reference Instrument for a U.S. Treasury futures contract is a U.S. Treasury security. The Reference Instrument for a Eurodollar
    futures contract is the London Interbank Offered Rate (commonly referred to as LIBOR); Eurodollar futures contracts enable the purchaser to obtain a fixed rate for the lending of funds over a stated period of time and
    the seller to obtain a fixed rate for a borrowing of funds over that same period.

    Index Futures

    Un
    index futures contract is an exchange-traded contract to make or receive a payment based upon changes in the value of an index. An index is a statistical composite that measures changes in the value of designated
    Reference Instruments within the index.




    Security Futures

    UN
    security futures contract is an exchange-traded contract to purchase or sell in the future a specific quantity of a security (other than a Treasury security) or a narrow-based securities index at a certain price.
    Presently, the only available security futures contracts use shares of a single equity security as the Reference Instrument. However, it is possible that in the future security futures contracts will be developed that
    use a single fixed-income security as the Reference Instrument.

    Currency Futures and Currency
    Forward Contracts (Types of Futures Contracts)

    UN
    currency futures contract is an exchange-traded contract to buy or sell a particular currency at a specific price at some time in the future (commonly three months or more). A currency forward contract is not an
    exchange-traded contract and an OTC derivative that represents an obligation to purchase or sell a specific currency at a future date, at a price set at the time of the contract and for a period agreed upon by the
    parties which may be either a window of time or a fixed number of days from the date of the contract. Currency futures and forward contracts are highly volatile, with a relatively small price movement potentially
    resulting in substantial gains or losses to the Fund. Additionally, the Fund may lose money on currency futures and forward contracts if changes in currency rates do not occur as anticipated or if the Fund's
    counterparty to the contract were to default.

    Option Contracts (A Type of
    Derivative)

    Option
    contracts (also called “options”) are rights to buy or sell a Reference Instrument for a specified price (the “exercise price”) during, or at the end of, a specified period. The seller (or
    writer) of the option receives a payment, or premium, from the buyer, which the writer keeps regardless of whether the buyer uses (or exercises) the option. Options may be bought or sold on a wide variety of Reference
    Instruments. Options that are written on futures contracts will be subject to margin requirements similar to those applied to futures contracts.

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    Fund may buy and/or sell the following types of options:

    Call Options

    A call
    option gives the holder (buyer) the right to buy the Reference Instrument from the seller (writer) of the option. The Fund may use call options in the following ways:

    ■  Buy call options on a Reference Instrument in anticipation of an increase in the value of the Reference Instrument; y
    ■  Write call options on a Reference Instrument to generate income from premiums, and in anticipation of a decrease or only limited increase in the value of the Reference Instrument. Si
    the Fund writes a call option on a Reference Instrument that it owns and that call option is exercised, the Fund foregoes any possible profit from an increase in the market price of the Reference Instrument over the
    exercise price plus the premium received.

    Put Options

    A put
    option gives the holder the right to sell the Reference Instrument to the writer of the option. The Fund may use put options in the following ways:

    ■  Buy put options on a Reference Instrument in anticipation of a decrease in the value of the Reference Instrument; y
    ■  Write put options on a Reference Instrument to generate income from premiums, and in anticipation of an increase or only limited decrease in the value of the Reference Instrument. En
    writing puts, there is a risk that the Fund may be required to take delivery of the Reference Instrument when its current market price is lower than the exercise price.

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    Fund may also buy or write options, as needed, to close out existing option positions.

    Finally, the Fund may enter into combinations of options contracts in an attempt to benefit from changes in the prices of those options contracts (without regard to changes in the value of the Reference
    Instrument).

    Swap Contracts (A Type of
    Derivative)

    A swap
    contract (also known as a “swap”) is a type of derivative contract in which two parties agree to pay each other (swap) the returns derived from Reference Instruments. Most swaps do not involve the delivery
    of the underlying assets by either party, and the parties might not own the Reference Instruments. The payments are usually made on a net basis so that, on any given day, the Fund would receive (or pay) only the
    amount by which its payment under the contract is less than (or exceeds) the amount of the other party's payment. Swap agreements are sophisticated instruments that can take many different forms and are known by a
    variety of names. Common swap agreements that the Fund may use include:




    Interest Rate Swaps

    Interest rate swaps are contracts in which one party agrees to make regular payments equal to a fixed or floating interest rate times a stated principal amount (commonly referred to as a “notional principal
    amount”) in return for payments equal to a different fixed or floating rate times the same principal amount, for a specific period. For example, a $10 million London Interbank Offered Rate (commonly referred to
    as LIBOR) swap would require one party to pay the equivalent of the London Interbank Offered Rate of interest (which fluctuates) on $10 million principal amount in exchange for the right to receive the equivalent of a
    stated fixed rate of interest on $10 million principal amount.

    Caps and Floors (A Type of Swap
    Contract)

    Caps
    and Floors are contracts in which one party agrees to make payments only if an interest rate or index goes above (Cap) or below (Floor) a certain level in return for a fee from the other party.

    Total Return Swaps

    A total
    return swap is an agreement between two parties whereby one party agrees to make payments of the total return from a Reference Instrument (or a basket of such instruments) during the specified period, in return for
    payments equal to a fixed or floating rate of interest or the total return from another Reference Instrument. Alternately, a total return swap can be structured so that one party will make payments to the other party
    if the value of a Reference Instrument increases, but receive payments from the other party if the value of that instrument decreases.

    Credit Default Swaps

    UN
    credit default swap (CDS) is an agreement between two parties whereby one party (the “Protection Buyer”) agrees to make payments over the term of the CDS to the other party (the “Protection
    Seller”), provided that no designated event of default, restructuring or other credit related event (each a “Credit Event”) occurs with respect to Reference Instrument that is usually a particular
    bond, loan or the unsecured credit of an issuer, in general (the “Reference Obligation”). Many CDS are physically settled, which means that if a Credit Event occurs, the Protection Seller must pay the
    Protection Buyer the full notional value, or “par value,” of the Reference Obligation in exchange for delivery by the Protection Buyer of the Reference Obligation or another similar obligation issued by
    the issuer of the Reference Obligation (the “Deliverable Obligation”). The Counterparties agree to the characteristics of the Deliverable Obligation at the time that they enter into the CDS. Alternately, a
    CDS can be “cash settled,” which means that upon the occurrence of a Credit Event, the Protection Buyer will receive a payment from the Protection Seller equal to the difference between the par amount of
    the Reference Obligation and its market value at the time of the Credit Event. The Fund may be either the Protection Buyer or the Protection Seller in a CDS. If the Fund is a Protection Buyer and no Credit Event
    occurs, the Fund will lose its entire investment in the CDS (i.e., an amount equal to the payments made to the Protection Seller over the term of the CDS). However, if a Credit Event occurs, the Fund (as Protection
    Buyer) will deliver the Deliverable Obligation and receive a payment equal to the full notional value of the Reference Obligation, even though the Reference Obligation may have little or no value. If the Fund is the
    Protection Seller and no Credit Event occurs, the Fund will receive a fixed rate of income throughout the term of the CDS. However, if a Credit Event occurs, the Fund (as Protection Seller) will pay the Protection
    Buyer the full notional value of the Reference Obligation and receive the Deliverable Obligation from the Protection Buyer. A CDS may involve greater risks than if the Fund invested directly in the Reference
    Obligation. For example, a CDS may increase credit risk since the Fund has exposure to both the issuer of the Reference Obligation and the Counterparty to the CDS.

    Currency Swaps

    Currency swaps are contracts which provide for interest payments in different currencies. The parties might agree to exchange the notional principal amounts of the currencies as well (commonly called a
    “foreign exchange swap”).

    Other Investments, Transactions,
    Techniques

    Repurchase Agreements

    Repurchase agreements are transactions in which the Fund buys a security from a dealer or bank and agrees to sell the security back at a mutually agreed-upon time and price. The repurchase price exceeds the sale
    price, reflecting the Fund's return on the transaction. This return is unrelated to the interest rate on the underlying security. The Fund will enter into repurchase agreements only with banks and other recognized
    financial institutions, such as securities dealers, deemed creditworthy by the Adviser.

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    Fund's custodian or sub-custodian will take possession of the securities subject to repurchase agreements. The Adviser or sub-custodian will monitor the value of the underlying security each day to ensure that the
    value of the security always equals or exceeds the repurchase price.

    Repurchase agreements are subject to credit risks.




    Reverse Repurchase Agreements

    Reverse
    repurchase agreements (which are considered a type of special transaction for asset segregation or asset coverage purposes) are repurchase agreements in which the Fund is the seller (rather than the buyer) of the
    securities, and agrees to repurchase them at an agreed upon time and price. A reverse repurchase agreement may be viewed as a type of borrowing by the Fund. Reverse repurchase agreements are subject to credit risks.
    In addition, reverse repurchase agreements create leverage risks because the Fund must repurchase the underlying security at a higher price, regardless of the market value of the security at the time of repurchase.

    Delayed Delivery Transactions

    Delayed
    delivery transactions, including when issued transactions, are arrangements in which the Fund buys securities for a set price, with payment and delivery of the securities scheduled for a future time. During the period
    between purchase and settlement, no payment is made by the Fund to the issuer and no interest accrues to the Fund. The Fund records the transaction when it agrees to buy the securities and reflects their value in
    determining the price of its shares. Settlement dates may be a month or more after entering into these transactions so that the market values of the securities bought may vary from the purchase prices. Therefore,
    delayed delivery transactions create interest rate risks for the Fund. Delayed delivery transactions also involve credit risks in the event of a counterparty default.

    Securities Lending

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    Fund may lend portfolio securities to borrowers that the Adviser deems creditworthy. In return, the Fund receives cash or liquid securities from the borrower as collateral. The borrower must furnish additional
    collateral if the market value of the loaned securities increases. Also, the borrower must pay the Fund the equivalent of any dividends or interest received on the loaned securities.

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    Fund will reinvest cash collateral in securities that qualify as an acceptable investment for the Fund. However, the Fund must pay interest to the borrower for the use of cash collateral. An acceptable investment into
    which the Fund may reinvest cash collateral includes, among other acceptable investments, securities of affiliated money market funds (including affiliated institutional prime money market funds with a
    “floating” net asset value that can impose redemption fees and liquidity gates, impose certain operational impediments to investing cash collateral, and, if net asset value decreases, result in the Fund
    having to cover the decrease in the value of the cash collateral).

    Loans
    are subject to termination at the option of the Fund or the borrower. The Fund will not have the right to vote on securities while they are on loan. However, the Fund will attempt to terminate a loan in an effort to
    reacquire the securities in time to vote on matters that are deemed to be material by the Adviser. There can be no assurance that the Fund will have sufficient notice of such matters to be able to terminate the loan
    in time to vote thereon. The Fund may pay administrative and custodial fees in connection with a loan and may pay a negotiated portion of the interest earned on the cash collateral to a securities lending agent or
    broker.

    Securities lending activities are subject to interest rate risks and credit risks.

    Hedging

    Hedging
    transactions are intended to reduce specific risks. For example, to protect the Fund against circumstances that would normally cause the Fund's portfolio securities to decline in value, the Fund may buy or sell a
    derivative contract that would normally increase in value under the same circumstances. The Fund may also attempt to hedge by using combinations of different derivative contracts, or derivative contracts and
    securities. The Fund's ability to hedge may be limited by the costs of the derivative contracts. The Fund may attempt to lower the cost of hedging by entering into transactions that provide only limited protection,
    including transactions that: (1) hedge only a portion of its portfolio; (2) use derivative contracts that cover a narrow range of circumstances or; (3) involve the sale of derivative contracts with different terms.
    Consequently, hedging transactions will not eliminate risk even if they work as intended. In addition, hedging strategies are not always successful, and could result in increased expenses and losses to the Fund.

    Hybrid Instruments

    Híbrido
    instruments combine elements of two different kinds of securities or financial instruments (such as a derivative contract). Frequently, the value of a hybrid instrument is determined by reference to changes in the
    value of a Reference Instrument (that is a designated security, commodity, currency, index or other asset or instrument including a derivative contract). Hybrid instruments can take on many forms including, but not
    limited to, the following forms. First, a common form of a hybrid instrument combines elements of a derivative contract with those of another security (typically a fixed-income security). In this case all or a portion
    of the interest or principal payable on a hybrid security is determined by reference to changes in the price of a Reference Instrument. Second, a hybrid instrument may also combine elements of a fixed-income security
    and an equity security. Third, hybrid instruments may include convertible securities with conversion terms related to a Reference Instrument.




    Depending on the type and terms of the hybrid instrument, its risks may reflect a combination of the risks of investing in the Reference Instrument with the risks of investing in other securities, currencies and
    derivative contracts. Thus, an investment in a hybrid instrument may entail significant risks in addition to those associated with traditional securities or the Reference Instrument. Hybrid instruments are also
    potentially more volatile than traditional securities or the Reference Instrument. Moreover, depending on the structure of the particular hybrid, it may expose the Fund to leverage risks or carry liquidity risks.

    Credit Linked Note (A Type of
    Hybrid Instrument)

    UN
    credit linked note (CLN) is a type of hybrid instrument in which a special purpose entity issues a structured note (the “Note Issuer”) with respect to which the Reference Instrument is a single bond, a
    portfolio of bonds, or the unsecured credit of an issuer, in general (each a “Reference Credit”). The purchaser of the CLN (the “Note Purchaser”) invests a par amount and receives a payment
    during the term of the CLN that equals a fixed or floating rate of interest equivalent to a high rated funded asset (such as a bank certificate of deposit) plus an additional premium that relates to taking on the
    credit risk of the Reference Credit. Upon maturity of the CLN, the Note Purchaser will receive a payment equal to: (i) the original par amount paid to the Note Issuer, if there is no occurrence of a designated event
    of default, restructuring or other credit event (each, a “Credit Event”) with respect to the issuer of the Reference Credit or; (ii) the market value of the Reference Credit, if a Credit Event has
    occurred. Depending upon the terms of the CLN, it is also possible that the Note Purchaser may be required to take physical delivery of the Reference Credit in the event of a Credit Event. Most credit linked notes use
    a corporate bond (or a portfolio of corporate bonds) as the Reference Credit. However, almost any type of fixed-income security (including foreign government securities), index or derivative contract (such as a credit
    default swap) can be used as the Reference Credit.

    Equity Linked Note (A Type of
    Hybrid Instrument)

    Un
    equity linked note (ELN) is a type of hybrid instrument that provides the noteholder with exposure to a single equity security, a basket of equity securities, or an equity index (the “Reference Equity
    Instrument”). Typically, an ELN pays interest at agreed rates over a specified time period and, at maturity, either converts into shares of a Reference Equity Instrument or returns a payment to the noteholder
    based on the change in value of a Reference Equity Instrument.

    Investing in Exchange-Traded
    Funds

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    Fund may invest in exchange-traded funds (ETFs) as an efficient means of gaining broad exposure to the high yield bond market. As with traditional mutual funds, ETFs charge asset-based fees, although these fees tend
    to be relatively low. ETFs are traded on stock exchanges or on the over-the-counter market. ETFs do not charge initial sales charges or redemption fees and investors pay only customary brokerage fees to buy and sell
    ETF shares.

    Asset Segregation

    En
    accordance with the Securities and Exchange Commission (SEC) and SEC staff positions regarding the interpretation of the Investment Company Act of 1940 (“1940 Act”), with respect to derivatives that create
    a future payment obligation of the Fund, the Fund must “set aside” (referred to sometimes as “asset segregation”) liquid assets, or engage in other SEC- or staff-approved measures, while the
    derivative contracts are open. For example, with respect to forwards and futures contracts that are not contractually required to “cash-settle,” the Fund must cover its open positions by setting aside cash
    or readily marketable securities equal to the contracts' full, notional value. With respect to forwards and futures that are contractually required to “cash-settle,” however, the Fund is permitted to set
    aside cash or readily marketable securities in an amount equal to the Fund's daily marked-to-market (net) obligations, if any (i.e., the Fund's daily net liability, if any), rather than the notional value.

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    Fund will employ another approach to segregating assets to cover options that it sells. If the Fund sells a call option, the Fund will set aside either the Reference Instrument subject to the option, cash or readily
    marketable securities with a value that equals or exceeds the current market value of the Reference Instrument. In no event, will the value of the cash or readily marketable securities set aside by the Fund be less
    than the exercise price of the call option. If the Fund sells a put option, the Fund will set aside cash or readily marketable securities with a value that equals or exceeds the exercise price of the put option.

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    Fund's asset segregation approach for swap agreements varies among different types of swaps. For example, if the Fund enters into a credit default swap as the Protection Buyer, then it will set aside cash or readily
    marketable securities necessary to meet any accrued payment obligations under the swap. By comparison, if the Fund enters into a credit default swap as the Protection Seller, then the Fund will set aside cash or
    readily marketable securities equal to the full notional amount of the swap that must be paid upon the occurrence of a Credit Event. For some other types of swaps, such as interest rate swaps, the Fund will calculate
    the obligations of the counterparties to the swap on a net basis. Consequently, the Fund's current obligation (or rights) under this type of swap will equal only the net amount to be paid or received based on the
    relative values of the positions held by each counterparty to the swap (the “net amount”). The net amount currently owed by or to the Fund will be accrued daily and the Fund will set aside cash or readily
    marketable securities equal to any accrued but unpaid net amount owed by the Fund under the swap.




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    Fund may reduce the liquid assets segregated to cover obligations under a derivative contract by entering into an offsetting derivative contract. For example, if the Fund sells a put option for the same Reference
    Instrument as a call option the Fund has sold, and the exercise price of the call option is the same as or higher than the exercise price of the put option, then the Fund may net its obligations under the options and
    set aside cash or readily marketable securities (including any margin deposited for the options) with a value equal to the greater: of (a) the current market value of the Reference Instrument deliverable under the
    call option; or (b) the exercise price of the put option.

    Por
    setting aside cash or readily marketable securities equal to only its net obligations under swaps and certain cash-settled derivative contracts, the Fund will have the ability to employ leverage to a greater extent
    than if the Fund were required to segregate cash or readily marketable securities equal to the full notional value of such contracts. The use of leverage involves certain risks. See “Risk Factors.” Unless
    the Fund has other cash or readily marketable securities to set aside, it cannot trade assets set aside in connection with derivative contracts or special transactions without entering into an offsetting derivative
    contract or terminating a special transaction. This may cause the Fund to miss favorable trading opportunities or to realize losses on derivative contracts or special transactions. The Fund reserves the right to
    modify its asset segregation policies in the future to comply with any changes in the positions articulated from time to time by the SEC and its staff.

    Generally, special transactions do not cash-settle on a net basis. Consequently, with respect to special transactions, the Fund will set aside cash or readily marketable securities with a value that equals or
    exceeds the Fund's obligations.

    Inter-Fund Borrowing and
    Third-Party Lending Arrangements

    Inter-Fund Borrowing

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    Securities and Exchange Commission (SEC) has granted an exemption that permits the Fund and all other funds advised by subsidiaries of Federated Investors, Inc. (“Federated funds”) to lend and borrow money
    for certain temporary purposes directly to and from other Federated funds. Participation in this inter-fund lending program is voluntary for both borrowing and lending Federated funds, and an inter-fund loan is only
    made if it benefits each participating Federated fund. Federated Investors, Inc. (“Federated”) administers the program according to procedures approved by the Fund's Board, and the Board monitors the
    operation of the program. Any inter-fund loan must comply with certain conditions set out in the exemption, which are designed to assure fairness and protect all participating Federated funds.

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    example, inter-fund lending is permitted only: (a) to meet shareholder redemption requests; (b) to meet commitments arising from “failed” trades; and (c) for other temporary purposes. All inter-fund loans
    must be repaid in seven days or less. The Fund's participation in this program must be consistent with its investment policies and limitations, and must meet certain percentage tests. Inter-fund loans may be made only
    when the rate of interest to be charged is more attractive to the lending Federated fund than market-competitive rates on overnight repurchase agreements (“Repo Rate”) y more attractive to the borrowing Federated fund than the rate of interest that would be charged by an unaffiliated bank for short-term borrowings (“Bank Loan Rate”),
    as determined by the Board. The interest rate imposed on inter-fund loans is the average of the Repo Rate and the Bank Loan Rate.

    Third-Party Line of Credit

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    Fund participates with certain other Federated Funds, on a several basis, in an up to $500,000,000 unsecured, 364-day, committed, revolving line of credit (LOC) agreement. The LOC was made available to finance
    temporarily the repurchase or redemption of shares of the Fund, failed trades, payment of dividends, settlement of trades and for other short-term, temporary or emergency general business purposes. The Fund cannot
    borrow under the LOC if an inter-fund loan is outstanding. The Fund's ability to borrow under the LOC also is subject to the limitations of the 1940 Act and various conditions precedent that must be satisfied before
    the Fund can borrow. Loans under the LOC are charged interest at a fluctuating rate per annum equal to the highest, on any day, of: (a) (i) the federal funds effective rate; (ii) the one month London Interbank Offered
    Rate (LIBOR); and (iii) 0.0%; plus (b) a margin. The LOC also requires the Fund to pay, quarterly in arrears and at maturity, its pro rata share of a commitment fee based on the amount of the lenders' commitment that
    has not been utilized. As of the date of this Statement of Additional Information, there were no outstanding loans. During the most recently ended fiscal year, the Fund did not utilize the LOC.

    Investment Risks

    There
    are many risk factors which may affect an investment in the Fund. The Fund's principal risks are described in its Prospectus. The following information is either additional information in respect of a principal risk
    factor referenced in the Prospectus or information in respect of a non-principal risk factor applicable to the Fund (in which case there is no related disclosure in the Prospectus).




    Call Risk

    Call
    risk is the possibility that an issuer may redeem a fixed-income security before maturity (a “call”) at a price below its current market price. An increase in the likelihood of a call may reduce the
    security's price.

    If a
    fixed-income security is called, the Fund may have to reinvest the proceeds in other fixed-income securities with lower interest rates, higher credit risks, or other less favorable characteristics.

    Credit Enhancement Risk

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    securities in which the Fund invests may be subject to credit enhancement (for example, guarantees, letters of credit or bond insurance). Credit enhancement is designed to help assure timely payment of the security;
    it does not protect the Fund against losses caused by declines in a security's value due to changes in market conditions. Securities subject to credit enhancement generally would be assigned a lower credit rating if
    the rating were based primarily on the credit quality of the issuer without regard to the credit enhancement. If the credit quality of the credit enhancement provider (for example, a bank or bond insurer) is
    downgraded, the rating on a security credit enhanced by such credit enhancement provider also may be downgraded.

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    single enhancement provider may provide credit enhancement to more than one of the Fund's investments. Having multiple securities credit enhanced by the same enhancement provider will increase the adverse effects on
    the Fund that are likely to result from a downgrading of, or a default by, such an enhancement provider. Adverse developments in the banking or bond insurance industries also may negatively affect the Fund, as the
    Fund may invest in securities credit enhanced by banks or by bond insurers without limit. Bond insurers that provide credit enhancement for large segments of the fixed income markets, including the municipal bond
    market, may be more susceptible to being downgraded or defaulting during recessions or similar periods of economic stress.

    Stock Market Risk

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    value of equity securities in the Fund's portfolio will rise and fall over time. These fluctuations could be a sustained trend or a drastic movement. Historically, the equity market has moved in cycles, and the value
    of the Fund's securities may fluctuate from day to day. The Fund's portfolio will reflect changes in prices of individual portfolio stocks or general changes in stock valuations. Consequently, the Fund's Share price
    may decline. The Adviser attempts to manage market risk by limiting the amount the Fund invests in each company's equity securities. However, diversification will not protect the Fund against widespread or prolonged
    declines in the stock market. Information publicly available about a company, whether from the company's financial statements or other disclosures or from third parties, or information available to some but not all
    market participants, can affect the price of a company's shares in the market. The price of a company's shares depends significantly on the information publicly available about the company. The reporting of poor
    results by a company, the restatement of a company's financial statements or corrections to other information regarding a company or its business may adversely affect the price of its shares, as would allegations of
    fraud or other misconduct by the company's management. The Fund may also be disadvantaged if some market participants have access to material information not readily available to other market participants, including
    the Fund.

    Risk of Investing in Loans

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    addition to the risks generally associated with debt instruments, such as credit, market, interest rate, liquidity and derivatives risks, bank loans are also subject to the risk that the value of the collateral
    securing a loan may decline, be insufficient to meet the obligations of the borrower or be difficult to liquidate. The Fund's access to the collateral may be limited by bankruptcy, other insolvency laws or by the type
    of loan the Fund has purchased. For example, if the Fund purchases a participation instead of an assignment, it would not have direct access to collateral of the borrower. As a result, a floating rate loan may not be
    fully collateralized and can decline significantly in value. Additionally, collateral on loan instruments may consist of assets that may not be readily liquidated, and there is no assurance that the liquidation of
    such assets will satisfy a borrower's obligations under the instrument. Loans generally are subject to legal or contractual restrictions on resale.

    Loans
    and other forms of indebtedness may be structured such that they are not securities under securities laws. As such, it is unclear whether loans and other forms of direct indebtedness offer securities law protections,
    such as those against fraud and misrepresentation. In the absence of definitive regulatory guidance, while there can be no assurance that fraud or misrepresentation will not occur with respect to the loans and other
    investments in which the Fund invests, the Fund relies on the Adviser's research in an attempt to seek to avoid situations where fraud or misrepresentation could adversely affect the Fund.

    Agent Insolvency Risk

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    syndicated loan, the agent bank is the bank that undertakes the bulk of the administrative duties involved in the day-to-day administration of the loan. In the event of the insolvency of an agent bank, a loan could be
    subject to settlement risk as well as the risk of interruptions in the administrative duties performed in the day-to-day administration of the loan (such as processing LIBOR calculations, processing draws, etc.).




    Loan Prepayment Risk

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    periods of declining interest rates or for other purposes, borrowers may exercise their option to prepay principal earlier than scheduled which may force the Fund to reinvest in lower-yielding debt instruments.

    Loan Liquidity Risk

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    instruments generally are subject to legal or contractual restrictions on resale. The liquidity of loans, including the volume and frequency of secondary market trading in such loans, varies significantly over time
    and among individual loans. For example, if the credit quality of a loan unexpectedly declines significantly, secondary market trading in that loan can also decline for a period of time. During periods of infrequent
    trading, valuing a loan can be more difficult and buying and selling a loan at an acceptable price can be more difficult and delayed. Difficulty in selling a loan can result in a loss.

    Loans
    may not be readily marketable and may be subject to restrictions on resale. In some cases, negotiations involved in disposing of loans may require weeks to complete. Thus, transactions in loan instruments may take
    longer than seven days to settle. This could pose a liquidity risk to the Fund and, if the Fund's exposure to such investments is substantial, could impair the Fund's ability to meet shareholder redemptions in a
    timely manner.

    Collateralized
    Loan Obligations Risk

    Collateralized loan obligations (CLOs) bear many of the same risks as other forms of asset-backed securities, including interest rate risk and issuer credit risk. As they are backed solely by pools of loans, CLOs
    also bear similar risks to investing in loans directly. CLOs issue classes or “tranches” that vary in risk and yield. The risks of an investment in a CLO depend largely on the type of collateral securities
    and the class of the CLO in which the Fund invests. CLOs may experience substantial losses attributable to loan defaults. Losses caused by defaults on underlying assets are borne first by the holders of subordinate
    tranches. The Fund's investment in CLOs may decrease in market value if the CLO experiences loan defaults or credit impairment, the disappearance of a subordinate tranche, or due to market anticipation of defaults and
    investor aversion to CLO securities as a class.

    Risk of Investing in Derivative
    Contracts and Hybrid Instruments

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    Fund's exposure to derivative contracts and hybrid instruments (either directly or through its investment in another investment company) involves risks different from, or possibly greater than, the risks associated
    with investing directly in securities and other traditional investments. First, changes in the value of the derivative contracts and hybrid instruments in which the Fund invests may not be correlated with changes in
    the value of the underlying Reference Instruments or, if they are correlated, may move in the opposite direction than originally anticipated. Second, while some strategies involving derivatives may reduce the risk of
    loss, they may also reduce potential gains or, in some cases, result in losses by offsetting favorable price movements in portfolio holdings. Third, there is a risk that derivative contracts and hybrid instruments may
    be erroneously priced or improperly valued and, as a result, the Fund may need to make increased cash payments to the counterparty. Fourth, exposure to derivative contracts and hybrid instruments may have tax
    consequences to the Fund and its shareholders. For example, derivative contracts and hybrid instruments may cause the Fund to realize increased ordinary income or short-term capital gains (which are treated as
    ordinary income for Federal income tax purposes) and, as a result, may increase taxable distributions to shareholders. In addition, under certain circumstances certain derivative contracts and hybrid instruments may
    cause the Fund to: (a) incur an excise tax on a portion of the income related to those contracts and instruments; and/or (b) reclassify, as a return of capital, some or all of the distributions previously made to
    shareholders during the fiscal year as dividend income. Fifth, a common provision in OTC derivative contracts permits the counterparty to terminate any such contract between it and the Fund, if the value of the Fund's
    total net assets declines below a specified level over a given time period. Factors that may contribute to such a decline (which usually must be substantial) include significant shareholder redemptions and/or a marked
    decrease in the market value of the Fund's investments. Any such termination of the Fund's OTC derivative contracts may adversely affect the Fund (for example, by increasing losses and/or costs, and/or preventing the
    Fund from fully implementing its investment strategies). Sixth, the Fund may use a derivative contract to benefit from a decline in the value of a Reference Instrument. If the value of the Reference Instrument
    declines during the term of the contract, the Fund makes a profit on the difference (less any payments the Fund is required to pay under the terms of the contract). Any such strategy involves risk. There is no
    assurance that the Reference Instrument will decline in value during the term of the contract and make a profit for the Fund. The Reference Instrument may instead appreciate in value creating a loss for the Fund.
    Seventh, a default or failure by a CCP or an FCM (also sometimes called a “futures broker”), or the failure of a contract to be transferred from an Executing Dealer to the FCM for clearing, may expose the
    Fund to losses, increase its costs, or prevent the Fund from entering or exiting derivative positions, accessing margin or fully implementing its investment strategies. The central clearing of a derivative and trading
    of a contract over a SEF could reduce the liquidity in, or increase costs of entering into or holding, any contracts. Finally, derivative contracts and hybrid instruments may also involve other risks described herein
    or in the Fund's prospectus, such as stock market, interest rate, credit, currency, liquidity and leverage risks.




    Real Estate Investment Trust
    (REIT) Risk

    Real
    estate investment trusts (REITs) including foreign REITs and REIT-like entities, are subject to risks associated with the ownership of real estate. Some REITs experience market risk due to investment in a limited
    number of properties, in a narrow geographic area, or in a single property type, which increases the risk that such REIT could be unfavorably affected by the poor performance of a single investment or investment type.
    These companies are also sensitive to factors such as changes in real estate values and property taxes, interest rates, cash flow of underlying real estate assets, supply and demand and the management skill and
    creditworthiness of the issuer. Borrowers could default on or sell investments that a REIT holds, which could reduce the cash flow needed to make distributions to investors. In addition, REITs may also be affected by
    tax and regulatory requirements impacting the REITs' ability to qualify for preferential tax treatments or exemptions. REITs require specialized management and pay management expenses. REITs also are subject to
    physical risks to real property, including weather, natural disasters, terrorist attacks, war, or other events that destroy real property. Foreign REITs and REIT-like entities can also be subject to currency risk,
    emerging market risk, limited public information, illiquid trading and the impact of local laws.

    REITs
    include equity REITs and mortgage REITs. Equity REITs may be affected by changes in the value of the underlying property owned by the trusts, while mortgage REITs may be affected by the quality of any credit extended.
    Further, equity and mortgage REITs are dependent upon management skills and generally may not be diversified. Equity and mortgage REITs are also subject to heavy cash flow dependency, defaults by borrowers and
    self-liquidations. In addition, equity and mortgage REITs could possibly fail to qualify for tax-free pass-through of income under applicable tax laws or to maintain their exemptions from registration under the 1940
    Act. The above factors may also adversely affect a borrower's or a lessee's ability to meet its obligations to the REIT. In the event of a default by a borrower or lessee, the REIT may experience delays in enforcing
    its rights as a mortgagee or lessor and may incur substantial costs associated with protecting its investments. In addition, even many of the larger REITs in the industry tend to be small to medium-sized companies in
    relation to the equity markets as a whole.

    Effective for taxable years beginning after December 31, 2017, the Tax Cuts and Jobs Act generally allows individuals and certain non-corporate entities, such as partnerships, a deduction for 20%
    of qualified REIT dividends. Recently issued proposed regulations allow a RIC to pass the character of its qualified REIT dividends through to its shareholders provided certain holding period requirements are met.

    Risk Associated with the
    Investment Activities of Other Accounts

    Investment decisions for the Fund are made independently from those of other accounts managed by the Adviser and accounts managed by affiliates of the Adviser. Therefore, it is possible that investment-related
    actions taken by such other accounts could adversely impact the Fund with respect to, for example, the value of Fund portfolio holdings, and/or prices paid to or received by the Fund on its portfolio transactions,
    and/or the Fund's ability to obtain or dispose of portfolio securities. Related considerations are discussed elsewhere in this SAI under “Brokerage Transactions and Investment Allocation.”

    Exchange-Traded Funds Risk

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    investment in an ETF generally presents the same primary risks as an investment in a conventional fund (i.e., one that is not exchange traded) that has the same investment objectives, strategies and policies. los
    price of an ETF can fluctuate up or down, and the Fund could lose money investing in an ETF if the prices of the securities owned by the ETF go down. In addition, ETFs may be subject to the following risks that do not
    apply to conventional funds: (i) the market price of an ETF's shares may trade above or below their net asset value; (ii) an active trading market for an ETF's shares may not develop or be maintained; or (iii) trading
    of an ETF's shares may be halted if the listing exchange's officials deem such action appropriate, the shares are delisted from the exchange or the activation of market-wide “circuit breakers” (which are
    tied to large decreases in stock prices) halts stock trading generally.

    Cybersecurity Risk

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    other funds and business enterprises, Federated's business relies on the security and reliability of information and communications technology, systems and networks. Federated uses digital technology, including, for
    example, networked systems, email and the Internet, to conduct business operations and engage clients, customers, employees, products, accounts, shareholders, and relevant service providers, among others. Federated,
    as well as its funds and certain service providers, also generate, compile and process information for purposes of preparing and making filings or reports to governmental agencies, and a cybersecurity attack or
    incident that impacts that information, or the generation and filing processes, may prevent required regulatory filings and reports from being made. The use of the Internet and other electronic media and technology
    exposes the Fund, the Fund's shareholders, and the Fund's service providers, and their respective operations, to potential risks from cybersecurity attacks or incidents (collectively, “cyber-events”).




    Cyber-events can result from intentional (or deliberate) attacks or unintentional events by insiders or third parties, including cybercriminals, competitors, nation-states and
    “hacktivists,” among others. Cyber-events may include, for example, phishing, use of stolen access credentials, unauthorized access to systems, networks or devices (such as, for example, through
    “hacking” activity), structured query language attacks, infection from or spread of malware, ransomware, computer viruses or other malicious software code, corruption of data, and attacks (including, but
    not limited to, denial of service attacks on websites) which shut down, disable, slow, impair or otherwise disrupt operations, business processes, technology, connectivity or website or internet access, functionality
    or performance. Like other funds and business enterprises, the Fund and its service providers have experienced, and will continue to experience, cyber-events on a daily basis. In addition to intentional cyber-events,
    unintentional cyber-events can occur, such as, for example, the inadvertent release of confidential information. To date, cyber-events have not had a material adverse effect on the Fund's business operations or
    performance.

    Cyber-events can affect, potentially in a material way, Federated's relationships with its customers, employees, products, accounts, shareholders and relevant service providers. Any cyber-event could adversely
    impact the Fund and its shareholders and cause the Fund to incur financial loss and expense, as well as face exposure to regulatory penalties, reputational damage and additional compliance costs associated with
    corrective measures. A cyber-event may cause the Fund, or its service providers, to lose proprietary information, suffer data corruption, lose operational capacity (such as, for example, the loss of the ability to
    process transactions, calculate the Fund's NAV, or allow shareholders to transact business or other disruptions to operations), and/or fail to comply with applicable privacy and other laws. Among other potentially
    harmful effects, cyber-events also may result in theft, unauthorized monitoring and failures in the physical infrastructure or operating systems that support the Fund and its service providers. In addition,
    cyber-events affecting issuers in which the Fund invests could cause the Fund's investments to lose value.

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    Fund's Adviser and its relevant affiliates have established risk management systems reasonably designed to seek to reduce the risks associated with cyber-events. The Fund's Adviser employs various measures aimed at
    mitigating cybersecurity risk, including, among others, use of firewalls, system segmentation, system monitoring, virus scanning, periodic penetration testing, employee phishing training and an employee cybersecurity
    awareness campaign. Among other vendor management efforts, Federated also conducts due diligence on key service providers (or vendors) relating to cybersecurity. Federated has established a committee to oversee
    Federated's information security and data governance efforts, and updates on cyber-events and risks are reviewed with relevant committees, as well as Federated's and the Fund's Boards of Directors or Trustees (or a
    committee thereof), on a periodic (generally quarterly) basis (and more frequently when circumstances warrant) as part of risk management oversight responsibilities. However, there is no guarantee that the efforts of
    Federated, the Fund's Adviser or its affiliates, or other service providers, will succeed, either entirely or partially as there are limits on Federated's and the Fund's ability to prevent, detect or mitigate
    cyber-events. Among other reasons, the cybersecurity landscape is constantly evolving, the nature of malicious cyber-events is becoming increasingly sophisticated and the Fund's Adviser, and its relevant affiliates,
    cannot control the cyber systems and cybersecurity systems of issuers or third-party service providers.

    Investment Objective and
    Investment Limitations

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    Fund's investment objective is to seek high current income. The investment objective may not be changed by the Fund's Board without shareholder approval.

    Investment Limitations

    Diversification

    With
    respect to securities comprising 75% of the value of its total assets, the Fund will not purchase securities of any one issuer (other than cash; cash items; securities issued or guaranteed by the government of the
    United States or its agencies or instrumentalities and repurchase agreements collateralized by such U.S. government securities; and securities of other investment companies) if, as a result, more than 5% of the value
    of its total assets would be invested in the securities of that issuer, or the Fund would own more than 10% of the outstanding voting securities of that issuer.

    Concentration

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    Fund will not purchase securities if, as a result of such purchase, more than 25% of the value of its assets would be invested in any one industry. However, the Fund may invest more than 25% of the value of its total
    assets in cash or cash items (not including certificates of deposit), securities issued or guaranteed by the U.S. government, its agencies or instrumentalities, or instruments secured by these instruments, such as
    repurchase agreements.

    Investing in Commodities

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    Fund will not purchase or sell commodities. The Fund reserves the right to purchase financial futures and put options on financial futures, not including stock index futures.




    Investing in Real Estate

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    Fund will not purchase or sell real estate, although it will invest in the securities of companies whose business involves the purchase or sale of real estate or in securities which are secured by real estate or
    interests therein.

    Buying on Margin

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    Fund will not purchase on margin, but may obtain such short-term credits as are necessary for the clearance of transactions and may make margin payments in connection with buying financial futures and put options on
    financial futures, not including stock index futures.

    Selling Short

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    Fund will not sell securities short, unless at all times when a short position is open it owns an equal amount of such securities or securities convertible into or exchangeable, without payment of any future
    consideration, for securities of the same issue as, and equal in amount to, the securities sold short, and unless not more than 10% of the value of the Fund's net assets (taken at current value) are held as collateral
    for such sales at any one time. It is the present intention of the Fund to make such sales only for the purpose of deferring realization of gain or loss for Federal income tax purposes.

    Borrowing Money

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    Fund will not issue senior securities, except as permitted by the Fund's investment objective and policies and except that the Fund may borrow money and engage in reverse repurchase agreements for investment leverage,
    but rather as a temporary, extraordinary or emergency measure or to facilitate management of the portfolio by enabling the Fund to meet redemption requests when the liquidation of portfolio securities is deemed to be
    inconvenient or disadvantageous.

    Lending

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    Fund will not lend any of its assets except portfolio securities (this shall not prevent the purchase or holding of corporate or government bonds, debentures, notes, certificates of indebtedness or other debt
    securities of an issuer, repurchase agreements or other transactions which are permitted by the Fund's investment objective and policies or Declaration of Trust).

    Underwriting

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    Fund will not underwrite any issue of securities, except as it may be deemed to be an underwriter under the Securities Act of 1933 in connection with the sale of securities in accordance with its investment objective,
    policies and limitations.

    The above
    limitations cannot be changed unless authorized by the Board and by the “vote of a majority of the Fund's outstanding voting securities,” as defined by the Investment Company Act of 1940 (“1940
    Act”). The following limitations, however, may be changed by the Board without shareholder approval. Shareholders will be notified before any material change in these limitations becomes effective.

    Illiquid Securities

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    Fund will not purchase securities for which there is no readily available market, or enter into repurchase agreements or purchase time deposits that the Fund cannot dispose of within seven days, if immediately after
    and as a result, the value of such securities would exceed, in the aggregate, 15% of the Fund's net assets.

    Investing in Other Investment
    Companies

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    Fund may invest its assets in securities of other investment companies as an efficient means of carrying out its investment policies. It should be noted that investment companies incur certain expenses, such as
    management fees, and, therefore, any investment by the Fund in shares of other investment companies may be subject to such additional expenses. At the present time, the Fund expects that its investments in other
    investment companies may include shares of money market funds, including funds affiliated with the fund's investment adviser.

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    Fund may invest in the securities of affiliated money market funds as an efficient means of managing the Fund's uninvested cash.

    Pledging Assets

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    Fund will not mortgage, pledge, or hypothecate any of its assets, provided that this shall not apply to the transfer of securities in connection with any permissible borrowing or to collateral arrangements in
    connection with permissible activities.

    Additional Information

    Except
    with respect to borrowing money, if a percentage limitation is adhered to at the time of investment, a later increase or decrease in percentage resulting from any change in value or net assets will not result in a
    violation of such restriction.




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    purposes of its policies and limitations, the Fund considers certificates of deposit and demand and time deposits issued by the U.S. branch of a domestic bank or savings associations having capital, surplus, and
    undivided profits in excess of $100,000,000 at the time of investment, to be “cash items.”

    As a matter of non-fundamental policy, for purposes of the illiquid securities policy, illiquid securities are securities that the Fund reasonably expects cannot be sold or disposed of in current
    market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment.

    Non-Fundamental Names Rule
    Policy

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    Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in investments rated below investment-grade. The Fund will notify shareholders in advance
    of any change in its investment policy that would enable the Fund to invest, under normal circumstances, less than 80% of its net assets in investments rated below investment-grade.

    What Do Shares Cost?

    Determining Market Value of
    Securities

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    Share's net asset value (NAV) is determined as of the end of regular trading on the New York Stock Exchange (NYSE) (normally 4:00 p.m. Eastern time) each day the NYSE is open. The Fund calculates the NAV of each class
    by valuing the assets allocated to the Share's class, subtracting the liabilities allocated to each class and dividing the balance by the number of Shares of the class outstanding. The NAV for each class of Shares may
    differ due to the level of expenses allocated to each class as well as a result of the variance between the amount of accrued investment income and capital gains or losses allocated to each class and the amount
    actually distributed to shareholders of each class. The NAV is calculated to the nearest whole cent per Share.

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    calculating its NAV, the Fund generally values investments as follows:

    ■  Equity securities listed on a U.S. securities exchange or traded through the U.S. national market system are valued at their last reported sale price or official closing price in their principal
    exchange or market. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and asked quotations from one or more dealers.
    ■  Other equity securities traded primarily in the United States are valued based upon the mean of closing bid and asked quotations from one or more dealers.
    ■  Equity securities traded primarily through securities exchanges and regulated market systems outside the United States are valued at their last reported sale price or official closing price in their
    principal exchange or market. These prices may be adjusted for significant events occurring after the closing of such exchanges or market systems as described below. If a price is not readily available, such equity
    securities are valued based upon the mean of closing bid and asked quotations from one or more dealers.
    ■  Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Board. The methods used by pricing services to determine such price evaluations are
    described below. If a price evaluation from a pricing service is not readily available, such fixed-income securities are fair valued based upon price evaluations from one or more dealers.
    ■  Futures contracts listed on exchanges are valued at their reported settlement price. Option contracts listed on exchanges are valued based upon the mean of closing bid and asked
    quotations reported by the exchange or from one or more futures commission merchants.
    ■  OTC derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board. The methods used by pricing services to determine such price evaluations are
    described below. If a price evaluation from a pricing service is not readily available, such derivative contracts may be fair valued based upon price evaluations from one or more dealers or using a recognized pricing
    model for the contract.
    ■  Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. The prospectuses for these mutual funds explain the circumstances under which they
    will use fair value pricing and the effects of using fair value pricing.

    If any
    price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund 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 Fund's valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the Valuation Committee, is deemed not
    representative of the fair value of such security, the Fund will use the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could
    purchase or sell an investment at the price used to calculate the Fund's NAV. The Fund will not use a pricing service or dealer who is an affiliated person of the Adviser to value investments.




    Noninvestment assets and liabilities are valued in accordance with U.S. Generally Accepted Accounting Principles (GAAP). The NAV calculation includes expenses, dividend income, interest income, other income and
    realized and unrealized investment gains and losses through the date of the calculation. Changes in holdings of investments and in the number of outstanding Shares are included in the calculation not later than the
    first business day following such change. Any assets or liabilities denominated in foreign currencies are converted into U.S. dollars using an exchange rate obtained from one or more currency dealers.

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    Fund follows procedures that are common in the mutual fund industry regarding errors made in the calculation of its NAV. This means that, generally, the Fund will not correct errors of less than one cent per Share or
    errors that did not result in net dilution to the Fund.

    Fair Valuation and Significant
    Events Procedures

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    Board has ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Board has appointed a Valuation Committee comprised of officers of the Fund,
    the Adviser and certain of the Adviser's affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Board has also authorized the use of pricing services recommended by
    the Valuation Committee to provide price evaluations of the current fair value of certain investments for purposes of calculating the NAV.

    Precios
    Service Valuations. Based on the recommendations of the Valuation Committee, the Board has authorized the Fund, subject to Board oversight, to use pricing services that provide daily fair
    value evaluations of the current value of certain investments, primarily fixed-income securities and OTC derivatives contracts. Different pricing services may provide different price evaluations for the same security
    because of differences in their methods of evaluating market values. 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. A pricing service may find it more difficult to apply
    these and other factors to relatively illiquid or volatile investments, which may result in less frequent or more significant changes in the price evaluations of these investments. If a pricing service determines that
    it does not have sufficient information to use its standard methodology, it may evaluate an investment based on the present value of what investors can reasonably expect to receive from the issuer's operations or
    liquidation.

    Special
    valuation considerations may apply with respect to the Fund's “odd-lot” positions, if any, as the Fund may receive lower prices when it sells such positions than it would receive for sales of institutional
    round lot positions. Typically, these securities are valued assuming orderly transactions of institutional round lot sizes, but the Fund may hold or, from time to time, transact in such securities in smaller, odd lot
    sizes.

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    Valuation Committee engages in oversight activities with respect to the Fund's pricing services, which includes, among other things, monitoring significant or unusual price fluctuations above predetermined tolerance
    levels from the prior day, back-testing of pricing services' prices against actual sale transactions, conducting periodic due diligence meetings and reviews, and periodically reviewing the inputs, assumptions and
    methodologies used by these pricing services. If information furnished by a pricing service is not readily available or, in the opinion of the Valuation Committee, is deemed not representative of the fair value of
    such security, the security will be fair valued by the Valuation Committee in accordance with procedures established by the Trustees as discussed below in “Fair Valuation Procedures.”

    Algunos
    pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations
    indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed
    securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts.

    Fair
    Valuation Procedures. The Board has established procedures for determining the fair value of investments for which price evaluations from pricing services or dealers and market quotations are
    not readily available. The procedures define an investment's “fair value” as the price that the Fund might reasonably expect to receive upon its current sale. The procedures assume that any sale would be
    made to a willing buyer in the ordinary course of trading. The procedures require consideration of factors that vary based on the type of investment and the information available. Factors that may be considered in
    determining an investment's fair value include: (1) the last reported price at which the investment was traded; (2) information provided by dealers or investment analysts regarding the investment or the issuer; (3)
    changes in financial conditions and business prospects disclosed in the issuer's financial statements and other reports; (4) publicly announced transactions (such as tender offers and mergers) involving the issuer;
    (5) comparisons to other investments or to financial indices that are correlated to the investment; (6) with respect to fixed-income investments, changes in market yields and spreads; (7) with respect to investments
    that have been suspended from trading, the circumstances leading to the suspension; and (8) other factors that might affect the investment's value.




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    Valuation Committee is responsible for the day-to-day implementation of these procedures subject to Board oversight. The Valuation Committee may also authorize the use of a financial valuation model to determine the
    fair value of a specific type of investment. The Board periodically reviews and approves the fair valuations made by the Valuation Committee and any changes made to the procedures.

    Using
    fair value to price investments may result in a value that is different from an investment's most recent closing price and from the prices used by other mutual funds to calculate their NAVs. The application of the
    fair value procedures to an investment represent a good faith determination of an investment's fair value. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the
    investment at approximately the time at which the Fund determines its NAV per share.

    Significant Events. The Board has adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of
    the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an
    affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the
    close of the principal market on which a security is traded, or the time of a price evaluation provided by a pricing service or a dealer, include:

    ■  With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;
    ■  Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; y
    ■  Announcements concerning matters such as acquisitions, recapitalizations or litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or
    market developments affecting the issuer's industry.

    The Board has adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from
    the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. The pricing service uses models that correlate changes between the closing and opening price of equity securities
    traded primarily in non-U.S. markets to changes in prices in U.S.-traded securities and derivative contracts. The pricing service seeks to employ the model that provides the most significant correlation based on a
    periodic review of the results. The model uses the correlation to adjust the reported closing price of a foreign equity security based on information available up to the close of the NYSE.

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    other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the fair value of the
    investment is determined using the methods discussed above in “Fair Valuation Procedures.” The Board has ultimate responsibility for any fair valuations made in response to a significant event.

    How is the Fund Sold?

    Debajo
    the Distributor's Contract with the Fund, the Distributor (“Federated Securities Corp.”) offers Shares on a continuous, best-efforts basis.

    Additional Payments To Financial
    Intermediaries

    IS Class Only

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    Distributor may pay out of its own resources amounts to certain financial intermediaries, including broker-dealers, banks, registered investment advisers, independent financial planners and retirement plan
    administrators. In some cases, such payments may be made by, or funded from the resources of, companies affiliated with the Distributor (including the Adviser). While Financial Industry Regulatory Authority, Inc.
    (FINRA) regulations limit the sales charges that you may bear, there are no limits with regard to the amounts that the Distributor may pay out of its own resources. In addition to the payments which are generally
    described herein and in the Prospectus, the financial intermediary also may receive Service Fees. In connection with these payments, the financial intermediary may elevate the prominence or profile of the Fund and/or
    other Federated funds within the financial intermediary's organization by, for example, placement on a list of preferred or recommended funds and/or granting the Distributor preferential or enhanced opportunities to
    promote the funds in various ways within the financial intermediary's organization. The same financial intermediaries may receive payments under more than one or all categories. These payments assist in the
    Distributor's efforts to support the sale of Shares. These payments are negotiated and may be based on such factors as: the number or value of Shares that the financial intermediary sells or may sell; the value of
    client assets invested; the level and types of




    services or support furnished by the
    financial intermediary; or the Fund's and/or other Federated funds' relationship with the financial intermediary. Not all financial intermediaries receive such payments and the amount of compensation may vary by
    intermediary. You should ask your financial intermediary for information about any payments it receives from the Distributor or the Federated funds and any services it provides, as well as the fees and/or commissions
    it charges.

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    categories of additional payments are described below.

    Supplemental Payments

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    Distributor may make supplemental payments to certain financial intermediaries that are holders or dealers of record for accounts in one or more of the Federated funds. These payments may be based on such factors as:
    the number or value of Shares the financial intermediary sells or may sell; the value of client assets invested; or the type and nature of services or support furnished by the financial intermediary.

    Processing Support Payments

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    Distributor may make payments to certain financial intermediaries that sell Federated fund shares to help offset their costs associated with client account maintenance support, statement processing and transaction
    processing. The types of payments that the Distributor may make under this category include: payment of ticket charges on a per-transaction basis; payment of networking fees; and payment for ancillary services such as
    setting up funds on the financial intermediary's mutual fund trading system.

    Retirement Plan Program Servicing
    Pagos

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    Distributor may make payments to certain financial intermediaries who sell Federated fund shares through retirement plan programs. A financial intermediary may perform retirement plan program services itself or may
    arrange with a third party to perform retirement plan program services. In addition to participant recordkeeping, reporting or transaction processing, retirement plan program services may include: services rendered to
    a plan in connection with fund/investment selection and monitoring; employee enrollment and education; plan balance rollover or separation; or other similar services.

    Marketing Support Payments

    From time to time, the Distributor, at its expense, may provide additional compensation to financial intermediaries that sell or arrange for the sale of Shares. Such compensation, provided by the
    Distributor, may include financial assistance to financial intermediaries that enable the Distributor to participate in or present at conferences or seminars, sales or training programs for invited registered
    representatives and other employees, client entertainment, client and investor events and other financial intermediary-sponsored events. Such compensation may also be used for the provision of sales-related data to
    the Adviser and/or its affiliates.

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    Distributor also may hold or sponsor, at its expense, sales events, conferences and programs for employees or associated persons of financial intermediaries and may pay the travel and lodging expenses of attendees.
    The Distributor also may provide, at its expense, meals and entertainment in conjunction with meetings with financial intermediaries. Other compensation may be offered to the extent not prohibited by applicable
    federal or state law or regulations, or the rules of any self-regulatory agency, such as FINRA. These payments may vary depending on the nature of the event or the relationship.

    For the year ended December 31, 2018, the following is a list of FINRA member firms that received additional payments from the Distributor or an affiliate. Additional payments may also be made to
    certain other financial intermediaries that are not FINRA member firms that sell Federated fund shares or provide services to the Federated funds and shareholders. These firms are not included in this list. Ninguna
    additions, modifications or deletions to the member firms identified in this list that have occurred since December 31, 2018, are not reflected. You should ask your financial intermediary for information about any
    additional payments it receives from the Distributor.

    9259 Wealth Management LLC
    ADP Broker-Dealer, Inc.
    American Enterprise Investment Services Inc.
    American Portfolios Financial Services, Inc.
    Ascensus Financial Services, LLC
    AXA Advisors, LLC
    B.C. Ziegler and Company
    Banc of America Investment Services, Inc.
    BB&T Securities, LLC
    BMO Harris Financial Advisors, Inc.
    Broadridge Business Process Outsourcing, LLC
    Brown Brothers Harriman & Company

    Callan LLC
    Cambridge Investment Research, Inc.
    Cetera Advisor Networks LLC
    Cetera Advisors LLC
    Cetera Financial Specialists LLC
    Cetera Investment Services LLC
    Charles Schwab & Company, Inc.
    CIBC Asset Management Inc.
    Citigroup Global Markets Inc.
    Citizens Securities, Inc.
    Comerica Securities, Inc.
    Commonwealth Financial Network




    Concord
    Wealth Partners
    D.A. Davidson & Co.
    Davenport & Company LLC
    David Lerner Associates, Inc.
    Deutsche Bank Securities Inc.
    Edward D. Jones & Co., LP
    Emerald Advisors LLC
    FBL Marketing Services, LLC
    Fendz Asset Management Inc.
    Fidelity Brokerage Services LLC
    Fidelity Investments Institutional Operations Company, Inc.
    Fiducia Group, LLC
    Fifth Third Securities, Inc.
    First Allied Securities, Inc.
    FIS Brokerage & Securities Services LLC
    Folger Nolan Fleming Douglas Incorporated
    FSC Securities Corporation
    Global Financial Private Capital, LLC
    Goldman, Sachs, & Co. LLC
    GWFS Equities, Inc.
    H.D. Vest Investment Securities, Inc.
    Hancock Investment Services, Inc.
    Hand Securities, Inc.
    Hefren Tillotson, Inc.
    HighTower Securities LLC
    Hilltop Securities Inc.
    Independent Financial Group, LLC
    Infinex Investments, Inc.
    Institutional Cash Distributors, LLC
    INTL FCStone Financial Inc.
    J.J.B. Hilliard, W.L. Lyons, LLC
    J.P. Morgan Securities LLC
    Janney Montgomery Scott LLC
    Kestra Investment Services, LLC
    Key Investment Services, LLC
    KeyBanc Capital Markets, Inc.
    Keystone Financial Planning
    KMS Financial Services, Inc.
    Lincoln Financial Securities Corporation
    Lincoln Investment Planning, LLC
    Lockton Financial Advisors LLC
    LPL Financial LLC
    M&T Securities Inc.
    Mercer Global Advisors Inc.
    Merrill Lynch, Pierce, Fenner and Smith Incorporated
    Mid Atlantic Capital Corp.
    MML Investors Services, LLC
    Morgan Stanley Smith Barney LLC
    National Financial Services LLC
    Nationwide Investment Services Corporation
    New England Investment & Retirement Group Inc.
    NYLIFE Distributors LLC
    Oneamerica Securities, Inc.
    Oppenheimer & Company, Inc.

    Paychex Securities Corp.
    Pensionmark Financial Group LLC
    People's Securities, Inc.
    Pershing LLC
    Pitcairn Trust Company
    Planmember Securities Corporation
    PNC Investments LLC
    Principium Investments LLC
    Prospera Financial Services, Inc.
    Prudential Investment Management Services, LLC
    Purshe Kaplan Sterling Investments
    Raymond James & Associates, Inc.
    RBC Capital Markets, LLC
    Resources Investment Advisors, Inc.
    Robert W. Baird & Co. Inc.
    Royal Alliance Associates Inc.
    SagePoint Financial, Inc.
    Sanford C. Bernstein & Company, LLC
    Securian Financial Services, Inc.
    Securities America, Inc.
    Securities Service Network, Inc.
    Security Distributors LLC
    Segal Advisors, Inc.
    Sentry Advisors, LLC
    Sigma Financial Corporation
    Signature Securities Group Corp.
    Soltis Investment Advisors, LLC
    Spire Securities LLC
    State Street Global Markets, LLC
    Stephens Inc.
    Stifel, Nicolaus & Company, Incorporated
    Strategic Benefit Consultants
    Summit Brokerage Services, Inc.
    Suntrust Robinson Humphrey, Inc.
    Symphonic Securities, LLC
    Synovus Securities, Inc.
    TD Ameritrade, Inc.
    The Huntington Investment Company
    Thrivent Investment Management, Inc.
    TIAA CREF Individual & Institutional Services LLC
    Transamerica Capital Inc.
    Transamerica Financial Advisors, Inc.
    Triad Advisors, Inc.
    U.S. Bancorp Investments, Inc.
    UBS Financial Services Inc.
    UBS Securities LLC
    UMB Financial Services, Inc.
    Vanguard Marketing Corporation
    Vining-Sparks IBG, Limited Partnership
    Vision Financial Markets, LLC
    Voya Financial Advisors, Inc.
    Voya Retirement Advisors, LLC
    Waddell & Reed, Inc.
    Wealthplan Advisors LLC




    Wedbush
    Morgan Securities Inc.
    Wells Fargo Clearing Services LLC
    WestPark Capital, Inc.
    Wintrust Investments LLC

    Woloshin Investment Management LLC
    Woodbury Financial Services, Inc.
    XML Financial, LLC

    Purchases
    In-Kind

    You may contact the Distributor to request a purchase of Shares using securities you own. The Fund reserves the right to determine whether to accept your securities and the minimum market value to accept. The Fund
    will value your securities in the same manner as it values its assets. An in-kind purchase may be treated as a sale of your securities for federal tax purposes; please consult your tax adviser regarding potential tax
    liability.

    Redemption
    In-Kind

    Although the Fund generally intends to pay Share redemptions in cash, it reserves the right, on its own initiative or in response to a shareholder request, to pay the redemption price in whole or in part by a
    distribution of the Fund's portfolio securities.

    Because the Fund has elected to be governed by Rule 18f-1 under the 1940 Act, the Fund is obligated to pay Share redemptions to any one shareholder in cash only up to the lesser of $250,000 or 1% of the net assets
    represented by such Share class during any 90-day period.

    Any Share redemption payment greater than this amount will also be in cash unless the Fund elects to pay all or a portion of the remainder of the redemption in portfolio securities, valued in the same way as the
    Fund determines its NAV.

    Redemption in-kind is not as liquid as a cash redemption. Shareholders receiving the portfolio securities could have difficulty selling them, may incur related transaction costs and would be subject to risks of
    fluctuations in the securities' values prior to sale.

    Massachusetts
    Partnership Law

    Under certain circumstances, shareholders may be held personally liable as partners under Massachusetts law for obligations of the Trust. To protect its shareholders, the Trust has filed legal documents with
    Massachusetts that expressly disclaim the liability of its shareholders for acts or obligations of the Trust.

    In the unlikely event a shareholder is held personally liable for the Trust's obligations, the Trust is required by the Declaration of Trust to use its property to protect or compensate the shareholder. On request,
    the Trust will defend any claim made and pay any judgment against a shareholder for any act or obligation of the Trust. Therefore, financial loss resulting from liability as a shareholder will occur only if the Trust
    itself cannot meet its obligations to indemnify shareholders and pay judgments against them.

    Account and
    Share Information

    Voting Rights

    Each Share of the Fund gives the shareholder one vote in Trustee elections and other matters submitted to shareholders for vote.

    All Shares of the Fund have equal voting rights, except that in matters affecting only a particular class, only Shares of that class are entitled to vote.

    Trustees may be removed by the Board or by shareholders at a special meeting. A special meeting of shareholders will be called by the Board upon the written request of shareholders who own at least 10% of the
    Trust's outstanding Shares of all series entitled to vote.

    As of December 9, 2019, the following shareholders owned of record, beneficially, or both, 5% or more of outstanding Institutional Shares: Goldman Sachs & Co., Salt Lake City, UT, owned
    approximately 98,776,304 Shares (16.45%); National Financial Services LLC, Jersey City, NJ, owned approximately 84,662,472 Shares (14.10%); Pershing LLC, Jersey City, NJ, owned approximately 42,942,340 Shares (7.15%);
    Charles Schwab & Co. Inc., San Francisco, CA, owned approximately 42,159,532 Shares (7.02%); Band & Co., Milwaukee, WI, owned approximately 41,427,170 Shares (6.90%); and Raymond James, St. Petersburg, FL,
    owned approximately 38,885,216 Shares (6.47%).

    As of December 9, 2019, the following shareholders owned of record, beneficially, or both, 5% or more of outstanding R6 Shares: J. P. Morgan Securities LLC, Brooklyn, NY, owned approximately 32,179,153 Shares
    (26.98%); Edward D. Jones & Co., Saint Louis, MO, owned approximately 17,030,034 Shares (14.28%); National Financial Services LLC, Jersey City, NJ, owned approximately 11,220,759 (9.40%); and NFS LLC FEBO,
    Columbus, OH, owned approximately 6,109,395 Shares (5.12%).




    Shareholders owning 25% or more of outstanding Shares may be in control and be able to affect the outcome of certain matters presented for a vote of shareholders.

    J.P.
    Morgan Securities LLC is organized in the state of Delaware.

    Tax Information

    Federal Income Tax

    The Fund intends to meet requirements of Subchapter M of the Internal Revenue Code (the “Code”) applicable to regulated investment companies. If these requirements are not met, it
    will not receive special tax treatment and will be subject to federal corporate income tax.

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    Fund will be treated as a single, separate entity for federal income tax purposes so that income earned and capital gains and losses realized by the Trust's other portfolios will be separate from those realized by the
    Fund.

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    Fund is entitled to a loss carryforward, which may reduce the taxable income or gain that the Fund would realize, and to which the shareholder would be subject, in the future.

    Tax Basis Information

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    Fund's Transfer Agent is required to provide you with the cost basis information on the sale of any of your Shares in the Fund, subject to certain exceptions.

    Foreign Investments

    Si el
    Fund purchases foreign securities, its investment income may be subject to foreign withholding or other taxes that could reduce the return on these securities. Tax treaties between the United States and foreign
    countries, however, may reduce or eliminate the amount of foreign taxes to which the Fund would be subject. The effective rate of foreign tax cannot be predicted since the amount of Fund assets to be invested within
    various countries is uncertain. However, the Fund intends to operate so as to qualify for treaty-reduced tax rates when applicable.

    Distributions from the Fund may be based on estimates of book income for the year. Book income generally consists solely of the income generated by the securities in the portfolio, whereas tax-basis income includes,
    in addition, gains or losses attributable to currency fluctuation. Due to differences in the book and tax treatment of fixed-income securities denominated in foreign currencies, it is difficult to project currency
    effects on an interim basis. Therefore, to the extent that currency fluctuations cannot be anticipated, a portion of distributions to shareholders could later be designated as a return of capital, rather than income,
    for income tax purposes, which may be of particular concern to certain trusts.

    Certain
    foreign corporations may qualify as Passive Foreign Investment Companies (PFIC). There are special rules prescribing the tax treatment of such an investment by the Fund, which could subject the Fund to federal income
    tax.

    If more
    than 50% of the value of the Fund's assets at the end of the tax year is represented by stock or securities of foreign corporations, the Fund will qualify for certain Code provisions that allow its shareholders to
    claim a foreign tax credit or deduction on their U.S. income tax returns. The Code may limit a shareholder's ability to claim a foreign tax credit. Shareholders who elect to deduct their portion of the Fund's foreign
    taxes rather than take the foreign tax credit must itemize deductions on their income tax returns.

    Who Manages and Provides
    Services to the Fund?

    Board of Trustees

    The Board of Trustees is responsible for managing the Trust's business affairs and for exercising all the Trust'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 15222-3779. The address of
    all Independent Trustees listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2018, the Trust comprised three portfolios, and the Federated Fund Complex consisted
    of 40 investment companies (comprising 102 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Trustee oversees all portfolios in the Federated Fund Complex and serves
    for an indefinite term.

    A partir de
    December 9, 2019, the Fund's Board and Officers as a group owned less than 1% of the Fund's outstanding Shares.




    qualifications of Independent
    Trustees

    Individual Trustee qualifications are noted in the “Independent Trustees Background and Compensation” chart. In addition, the following characteristics are among those that were considered for each
    existing Trustee and will be considered for any Nominee Trustee.

    ■  Outstanding skills in disciplines deemed by the Independent Trustees to be particularly relevant to the role of Independent Trustee and to the Federated funds, including legal, accounting, business
    management, the financial industry generally and the investment industry particularly.
    ■  Desire and availability to serve for a substantial period of time, taking into account the Board's current mandatory retirement age of 75 years.
    ■  No conflicts which would interfere with qualifying as independent.
    ■  Appropriate interpersonal skills to work effectively with other Independent Trustees.
    ■  Understanding and appreciation of the important role occupied by Independent Trustees in the regulatory structure governing regulated investment companies.
    ■  Diversity of background.

    interested Trustees Background
    and Compensation

    Nombre
    Fecha de nacimiento
    Positions Held with Trust
    Date Service Began
    Principal Occupation(s) for Past Five Years,
    Other Directorships Held and Previous Position(s)
    Aggregate
    Compensation
    From Fund
    (past fiscal year)
    Total Compensation
    From Fund and
    Federated Fund Complex
    (past calendar year)
    J. Christopher Donahue*
    Birth Date: April 11, 1949
    President and Trustee
    Indefinite Term
    Began serving: April 1999
    Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Complex; Director or Trustee of the Funds in the Federated Fund Complex; 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 and Trustee, Federated Equity Management Company of Pennsylvania; 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.; Chairman, Passport Research, Ltd.
    $0 $0
    John B. Fisher*
    Birth Date: May 16, 1956
    Trustee
    Indefinite Term
    Began serving: May 2016
    Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Complex; Director or Trustee of certain of the Funds in the Federated Fund Complex; Vice President,
    Federated Investors, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated
    Investment Counseling, Federated Investment Management Company; President of some of the Funds in the Federated Fund Complex and Director, Federated Investors Trust Company.
    Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research,
    Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Investors, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated
    Services Company.
    $0 $0
    * Reasons for “interested” status: J. Christopher Donahue and John B. Fisher are interested due to their beneficial ownership of shares of Federated Investors, Inc. and due to positions they hold with
    Federated and its subsidiaries.



    Independent Trustees Background,
    Qualifications and Compensation

    Nombre
    Fecha de nacimiento
    Positions Held with Trust
    Date Service Began
    Principal Occupation(s) and Other Directorships Held for
    Past Five Years, Previous Position(s) and Qualifications
    Aggregate
    Compensation
    From Fund
    (past fiscal year)
    Total Compensation
    From Trust and
    Federated Fund Complex
    (past calendar year)
    John T. Collins
    Birth Date: January 24, 1947
    Trustee
    Indefinite Term
    Began serving: October 2013
    Principal Occupations: Director or Trustee of the Federated Fund Complex; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired).
    Other Directorships Held: Director, Chairman of the Compensation Committee, KLX Energy Services Holdings, Inc. (oilfield services); former Director of KLX Corp (aerospace).
    Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO of The Collins Group, Inc. (a private equity firm) and as a Director of KLX Corp. Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and
    Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital).
    $7,782.84 $275,000
    G. Thomas Hough
    Birth Date: February 28, 1955
    TrusteeIndefinite Term
    Began serving: August 2015
    Principal Occupations: Director or Trustee of the Federated Fund Complex; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired).
    Other Directorships Held: Director, Member of Governance and Compensation Committees, Publix Super Markets, Inc.; Director, Chair of the Audit Committee, Equifax, Inc.; Director, Member of the Audit Committee, Haverty Furniture Companies, Inc.
    Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with
    Ernst & Young LLP (public accounting firm). Mr. Hough serves on the President's Cabinet and Business School Board of Visitors for the University of Alabama and is on the Business School Board of Visitors for Wake
    Forest University. Mr. Hough previously served as an Executive Committee member of the United States Golf Association.
    $6,435.04 $275,000
    Maureen Lally-Green
    Birth Date: July 5, 1949
    TrusteeIndefinite Term
    Began serving: August 2009
    Principal Occupations: Director or Trustee of the Federated Fund Complex; Adjunct Professor of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law
    and Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh.
    Other Directorships Held: Director, CNX Resources Corporation (formerly known as 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 held the position of Dean of the School of
    Law of Duquesne University (as well as Interim Dean). Judge Lally-Green previously served as a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge
    Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.;
     Regent, Saint Vincent Seminary; Member, Pennsylvania State Board of Education (public); and Director CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Judge Lally-Green has held the positions of:
    Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the
    Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Director, Saint Vincent
    College; and Director and Chair, North Catholic High School, Inc.
    $6,435.04 $275,000



    Nombre
    Fecha de nacimiento
    Positions Held with Trust
    Date Service Began
    Principal Occupation(s) and Other Directorships Held for
    Past Five Years, Previous Position(s) and Qualifications
    Aggregate
    Compensation
    From Fund
    (past fiscal year)
    Total Compensation
    From Trust and
    Federated Fund Complex
    (past calendar year)
    Charles F. Mansfield, Jr.
    Birth Date: April 10, 1945
    TrusteeIndefinite Term
    Began serving: April 1999
    Principal Occupations: Director or Trustee of the Federated Fund Complex; Management Consultant and Author.
    Other Directorships Held: None.
    Qualifications: Mr. Mansfield has served as a Marine Corps officer and in several banking, business management, educational roles and directorship positions throughout his long career. He remains active
    as a Management Consultant and Author.
    $5,850.05 $250,000
    Thomas M. O'Neill
    Birth Date: June 14, 1951
    TrusteeIndefinite Term
    Began serving: August 2006
    Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Fund Complex; 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; Crédito
    Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber).
    $7,230.89 $310,000
    P. Jerome Richey
    Birth Date: February 23, 1949
    Trustee
    Indefinite Term
    Began serving: October 2013
    Principal Occupations: Director or Trustee of the Federated Fund Complex; Management Consultant; Retired; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice
    President and Chief Legal Officer, CNX Resources Corporation (formerly known as CONSOL Energy Inc.).
    Other Directorships Held: None.
    Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor
    and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. señor.
    Richey previously served as Chief Legal Officer and Executive Vice President, CNX Resources Corporation (formerly known as CONSOL Energy Inc.) and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll &
    Rooney PC (a law firm).
    $5,850.05 $250,000
    John S. Walsh
    Birth Date: November 28, 1957
    TrusteeIndefinite Term
    Began serving: April 1999
    Principal Occupations: Director or Trustee and Chair of the Board of Directors or Trustees, of the Federated Fund Complex; 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).
    $7,782.84 $335,000



    OFFICERS*

    Nombre
    Fecha de nacimiento
    Positions Held with Trust
    Date Service Began
    Principal Occupation(s) and Previous Position(s)
    Lori A. Hensler
    Birth Date: January 6, 1967
    Treasurer
    Officer since: April 2013
    Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Complex; 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.
    Peter J. Germain
    Birth Date: September 3, 1959
    CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT
    Officer since: January 2005
    Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Fund Complex. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice
    President, Federated Investors, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated
    Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; y
    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.
    Stephen Van Meter
    Birth Date: June 5, 1975
    CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT
    Officer since: July 2015
    Principal Occupations:Senior Vice President and Chief Compliance Officer of the Federated Fund Complex; Vice President and Chief Compliance Officer of Federated Investors, Inc. and Chief Compliance Officer of
    certain of its subsidiaries. Mr. Van Meter joined Federated in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66.
    Previous Positions:Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Investors, Inc. Prior to joining Federated, Mr. Van Meter served at the United States Securities and
    Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement.
    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.
    * Officers do not receive any compensation from the Fund.

    In addition, the Fund has appointed
    an Anti-Money Laundering Compliance Officer.

    DIRECTOR/TRUSTEE EMERITUS
    PROGRAM

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    Board has created a position of Director/Trustee Emeritus, whereby an incumbent Director/Trustee who has attained the age of 75 and completed a minimum of five years of service as a director/trustee, may, in the sole
    discretion of the Committee of Independent Directors/Trustees (“Committee”), be recommended to the full Board of Directors/Trustees of the Fund to serve as Director/Trustee Emeritus.

    A Director/Trustee Emeritus that has been approved as such receives an annual fee in an amount equal to a percent of the annual base compensation paid to a Director/Trustee. In the case of a
    Director/Trustee Emeritus who had previously served at least five years but less than 10 years as a Director/Trustee, the percent will be 10%. In the case of a Director/Trustee Emeritus who had previously served at
    least 10 years as a Director/Trustee, the percent will be 20%. The Director/Trustee Emeritus will be reimbursed for any expenses incurred in connection with their service, including expenses of travel and lodging
    incurred in attendance at Board meetings. Director/Trustee Emeritus will continue to receive relevant materials concerning the Funds, will be expected to attend at least one regularly scheduled quarterly meeting of
    the Board of Directors/Trustees each year and will be available to consult with the Committees or its representatives at reasonable times as requested by the Chairman; however, a Director/Trustee Emeritus does not
    have any voting rights at Board meetings and is not subject to election by shareholders of the Funds.

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    Director/Trustee Emeritus will be permitted to serve in such capacity at the pleasure of the Committee, but the annual fee will cease to be paid at the end of the calendar year during which he or she has attained the
    age of 80 years, thereafter the position will be honorary.

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    following table shows the fees paid to each Director/Trustee Emeritus for the Fund's most recently ended fiscal year and the portion of that fee paid by the Fund or Trust.1




    EMERITUS Trustees and
    Compensation

    Director/Trustee Emeritus Compensation
    From Fund
    (past fiscal year)
    Total
    Compensation
    Paid to
    Director/Trustee
    Emeritus1
    Nicholas Constantakis $1,248.93 $50,000.00
    Peter E. Madden $1,248.93 $50,000.00
    1 los
    fees paid to each Director/Trustee are allocated among the funds that were in existence at the time the Director/Trustee elected Emeritus status, based on each fund's net assets at that time.

    BOARD LEADERSHIP STRUCTURE

    As
    required under the terms of certain regulatory settlements, the Chairman of the Board is not an interested person of the Fund and neither the Chairman, nor any firm with which the Chairman is affiliated, has a prior
    relationship with Federated or its affiliates or (other than his position as a Trustee) with the Fund.

    Committees of the Board

    Board
    Committee
    Committee
    Members
    Committee Functions Meetings Held
    During Last
    Fiscal Year
    Executive J. Christopher Donahue
    John T. Collins
    John S. Walsh
    In between meetings of the full Board, the Executive Committee generally may exercise all the powers of the full Board in the
    management and direction of the business and conduct of the affairs of the Trust in such manner as the Executive Committee shall deem to be in the best interests of the Trust. However, the Executive Committee cannot
    elect or remove Board members, increase or decrease the number of Trustees, elect or remove any Officer, declare dividends, issue shares or recommend to shareholders any action requiring shareholder approval.
    One
    Audit John T. Collins
    G. Thomas Hough
    Maureen Lally-Green
    Thomas M. O'Neill
    The purposes of the Audit Committee are to oversee the accounting and financial reporting process of the Fund, the Fund's
    internal control over financial reporting and the quality, integrity and independent audit of the Fund's financial statements. The Committee also oversees or assists the Board with the oversight of compliance with
    legal requirements relating to those matters, approves the engagement and reviews the qualifications, independence and performance of the Fund's independent registered public accounting firm, acts as a liaison between
    the independent registered public accounting firm and the Board and reviews the Fund's internal audit function.
    Seven
    Nominating John T. Collins
    G. Thomas Hough
    Maureen Lally-Green
    Charles F. Mansfield, Jr.
    Thomas M. O'Neill
    P. Jerome Richey
    John S. Walsh
    The Nominating Committee, whose members consist of all Independent Trustees, selects and nominates persons for election to the
    Fund's Board when vacancies occur. The Committee will consider candidates recommended by shareholders, Independent Trustees, officers or employees of any of the Fund's agents or service providers and counsel to the
    Fund. Any shareholder who desires to have an individual considered for nomination by the Committee must submit a recommendation in writing to the Secretary of the Fund, at the Fund's address appearing on the back
    cover of this SAI. The recommendation should include the name and address of both the shareholder and the candidate and detailed information concerning the candidate's qualifications and experience. In identifying and
    evaluating candidates for consideration, the Committee shall consider such factors as it deems appropriate. Those factors will ordinarily include: integrity, intelligence, collegiality, judgment, diversity, skill,
    business and other experience, qualification as an “Independent Trustee,” the existence of material relationships which may create the appearance of a lack of independence, financial or accounting
    knowledge and experience and dedication and willingness to devote the time and attention necessary to fulfill Board responsibilities.
    One

    BOARD'S ROLE IN RISK OVERSIGHT

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    Board's role in overseeing the Fund's general risks includes receiving performance reports for the Fund and risk management reports from Federated's Chief Risk Officer at each regular Board meeting. The Chief Risk
    Officer is responsible for enterprise risk management at Federated, which includes risk management committees for investment management and for investor services. The Board also receives regular reports from the
    Fund's Chief Compliance Officer regarding significant compliance risks.

    On
    behalf of the Board, the Audit Committee plays a key role overseeing the Fund's financial reporting and valuation risks. The Audit Committee meets regularly with the Fund's Principal Financial Officer and outside
    auditors, as well as with Federated's Chief Audit Executive to discuss financial reporting and audit issues, including risks relating to financial controls.




    Board Ownership
    Of Shares In The Fund And In The Federated Family Of Investment Companies As Of December 31, 2018

    Interested Board
    Member Name
    Dollar Range of
    Shares Owned in
    Federated Institutional High Yield Bond Fund
    Aggregate
    Dollar Range of
    Shares Owned in
    Federated Family of
    Investment Companies
    J. Christopher Donahue $50,001-$100,000 Over $100,000
    John B. Fisher Ninguna Over $100,000
    Independent Board
    Member Name
    John T. Collins Ninguna Over $100,000
    G. Thomas Hough Ninguna Over $100,000
    Maureen Lally-Green Ninguna Over $100,000
    Charles F. Mansfield, Jr. Ninguna $50,001-$100,000
    Thomas M. O'Neill Ninguna Over $100,000
    P. Jerome Richey Ninguna Over $100,000
    John S. Walsh $10,001-$50,000 Over $100,000

    Investment Adviser

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    Adviser conducts investment research and makes investment decisions for the Fund.

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    Adviser is a wholly owned subsidiary of Federated.

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    Adviser shall not be liable to the Trust or any Fund shareholder for any losses that may be sustained in the purchase, holding or sale of any security or for anything done or omitted by it, except acts or omissions
    involving willful misfeasance, bad faith, gross negligence or reckless disregard of the duties imposed upon it by its contract with the Trust.

    In December 2017, Federated Investors, Inc. became a signatory to the Principles for Responsible Investment (PRI). The PRI is an investor initiative in partnership with the United Nations
    Environment Programme Finance Initiative and the United Nations Global Compact. Commitments made as a signatory to the PRI are not legally binding, but are voluntary and aspirational. They include efforts, where
    consistent with our fiduciary responsibilities, to incorporate environmental, social and corporate governance (ESG) issues into investment analysis and investment decision making, to be active owners and incorporate
    ESG issues into our ownership policies and practices, to seek appropriate disclosure on ESG issues by the entities in which we invest, to promote acceptance and implementation of the PRI within the investment
    industry, to enhance our effectiveness in implementing the PRI, and to report on our activities and progress towards implementing the PRI. Being a signatory to the PRI does not obligate Federated to take, or not take,
    any particular action as it relates to investment decisions or other activities.

    In July
    2018, Federated acquired a 60% interest in Hermes Fund Managers Limited (Hermes), which operates as Hermes Investment Management, a pioneer of integrated ESG investing. Hermes' experience with ESG issues contributes
    to Federated's understanding of material risks and opportunities these issues may present.

    Portfolio Manager Information

    Como un
    general matter, certain conflicts of interest may arise in connection with a portfolio manager's management of a fund's investments, on the one hand, and the investments of other funds/pooled investment vehicles or
    accounts (collectively, including the Fund, as applicable, “accounts”) for which the portfolio manager is responsible, on the other. For example, it is possible that the various accounts managed could have
    different investment strategies that, at times, might conflict with one another to the possible detriment of the Fund. Alternatively, to the extent that the same investment opportunities might be desirable for more
    than one account, possible conflicts could arise in determining how to allocate them. Other potential conflicts can include, for example, conflicts created by specific portfolio manager compensation arrangements
    (including, for example, the allocation or weighting given to the performance of the Fund or other accounts or activities for which the portfolio manager is responsible in calculating the portfolio manager's
    compensation), and conflicts relating to selection of brokers or dealers to execute Fund portfolio trades and/or specific uses of commissions from Fund portfolio trades (for example, research or “soft
    dollars”). The Adviser has adopted policies and procedures and has structured the portfolio managers' compensation in a manner reasonably designed to safeguard the Fund from being negatively affected as a result
    of any such potential conflicts.

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    following information about the Fund's Portfolio Managers is provided as of the end of the Fund's most recently completed fiscal year unless otherwise indicated.




    Mark Durbiano, Portfolio
    Gerente

    Types of Accounts Managed
    by Mark Durbiano
    Total Number of Additional Accounts
    Managed/Total Assets*
    Additional Accounts/Assets Managed
    that are Subject to Advisory Fee
    Based on Account Performance
    Registered Investment Companies 20/$7.3 billion 0/$0
    Other Pooled Investment Vehicles 3/$270.1 million 0/$0
    Other Accounts 5/$261.9 million 1/$89.5 million
    * None of the Accounts has an advisory fee that is based on the performance of the account.

    Dollar value range of shares owned
    in the Fund: Over $1,000,000.

    Mark
    Durbiano is paid a fixed base salary and a variable annual incentive. Base salary is determined within a market competitive, position-specific salary range, based on the portfolio manager's experience and performance.
    The annual incentive amount is determined based primarily on Investment Product Performance (IPP) and may also include a discretionary component based on a variety of factors deemed relevant, such as financial
    measures and performance and may be paid entirely in cash, or in a combination of cash and restricted stock of Federated Investors, Inc. (“Federated”). The total combined annual incentive opportunity is
    intended to be competitive in the market for this portfolio manager role.

    IPP is
    measured on a rolling one, three and five calendar year pre-tax gross total return basis versus the Fund's benchmark (i.e., Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index) and versus the Fund's
    designated peer group of comparable accounts. Performance periods are adjusted if a portfolio manager has been managing an account for less than five years; accounts with less than one year of performance history
    under a portfolio manager may be excluded.

    As
    noted above, Mr. Durbiano is also the portfolio manager for other accounts in addition to the Fund. Such other accounts may have different benchmarks and performance measures. The allocation or weighting given to the
    performance of the Fund or other accounts or activities for which Mr. Durbiano is responsible when his compensation is calculated may be equal or can vary.

    En
    addition, Mr. Durbiano has oversight responsibility for other portfolios that he does not personally manage and serves on one or more Investment Teams that establish guidelines on various performance drivers (e.g.,
    currency, duration, sector, volatility and/or yield curve) for taxable, fixed-income accounts. A portion of the IPP score is based on Federated's senior management's assessment of team contributions.

    por
    purposes of calculating the annual incentive amount, each account managed by the portfolio manager currently is categorized into one IPP group (which may be adjusted periodically). Within each performance measurement
    period and IPP group, IPP currently is calculated on the basis of an assigned weighting to each account managed or activity engaged in by the portfolio manager and included in the IPP group. At the account level, the
    weighting assigned to the Fund is lesser than or equal to the weighting assigned to other accounts or activities used to determine IPP (but can be adjusted periodically). A portion of the bonus tied to the IPP score
    may be adjusted based on management's assessment of overall contributions to account performance and any other factors as deemed relevant. Pursuant to the terms of a business agreement, Mr. Durbiano's annual
    incentives may include certain guaranteed amounts.

    Ninguna
    individual allocations from the discretionary pool may be determined, by executive management on a discretionary basis using various factors, such as, for example, on a product, strategy or asset class basis, and
    considering overall contributions and any other factors deemed relevant (and may be adjusted periodically).




    Steven J. Wagner, Portfolio
    Gerente

    Types of Accounts Managed
    by Steven J. Wagner
    Total Number of Additional Accounts
    Managed/Total Assets*
    Registered Investment Companies 10/$4.7 billion
    Other Pooled Investment Vehicles 0/$0
    Other Accounts 2/$79.8 million
    * None of the Accounts has an advisory fee that is based on the performance of the account.

    Dollar value range of shares owned
    in the Fund: $100,001-$500,000.

    Steven
    J. Wagner is paid a fixed base salary and a variable annual incentive. Base salary is determined within a market competitive, position-specific salary range, based on the portfolio manager's experience and
    performance. The annual incentive amount is determined based primarily on Investment Product Performance (IPP) and may also include a discretionary component based on a variety of factors deemed relevant, such as
    financial measures and performance and may be paid entirely in cash, or in a combination of cash and restricted stock of Federated Investors, Inc. (“Federated”). The total combined annual incentive
    opportunity is intended to be competitive in the market for this portfolio manager role.

    IPP is
    measured on a rolling one, three and five calendar year pre-tax gross total return basis versus the Fund's benchmark (i.e., Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index) and versus the Fund's
    designated peer group of comparable accounts. Performance periods are adjusted if a portfolio manager has been managing an account for less than five years; accounts with less than one year of performance history
    under a portfolio manager may be excluded.

    As noted above, Mr. Wagner is also the portfolio manager for other accounts in addition to the Fund. Such other accounts may have different benchmarks and performance measures. The allocation or
    weighting given to the performance of the Fund or other accounts or activities for which Mr. Wagner is responsible when his compensation is calculated may be equal or can vary.In addition, Mr. Wagner serves on one or
    more Investment Teams that establish guidelines on various performance drivers (e.g., currency, duration, sector, volatility and/or yield curve) for taxable, fixed-income accounts. A portion of the IPP score is based
    on Federated's senior management's assessment of team contributions.For purposes of calculating the annual incentive amount, each account managed by the portfolio manager currently is categorized into one of two IPP
    groups (which may be adjusted periodically). Within each performance measurement period and IPP group, IPP currently is calculated on the basis of an assigned weighting to each account managed or activity engaged in
    by the portfolio manager and included in the IPP groups. At the account level, the weighting assigned to the Fund is lesser than or equal to the weighting assigned to other accounts or activities used to determine IPP
    (but can be adjusted periodically). Additionally, a portion of Mr. Wagner's IPP score is based on the performance for which he provides research and analytic support. A portion of the bonus tied to the IPP score may
    be adjusted based on management's assessment of overall contributions to account performance and any other factors as deemed relevant.

    Ninguna
    individual allocations from the discretionary pool may be determined, by executive management on a discretionary basis using various factors, such as, for example, on a product, strategy or asset class basis, and
    considering overall contributions and any other factors deemed relevant (and may be adjusted periodically).

    Services Agreement

    Federated Advisory Services Company, an affiliate of the Adviser, provides certain support services to the Adviser. The fee for these services is paid by the Adviser and not by the Fund.

    Other Related Services

    Affiliates of the Adviser may, from time to time, provide certain electronic equipment and software to institutional customers in order to facilitate the purchase of Fund Shares offered by the Distributor.

    Code Of Ethics Restrictions On
    Personal Trading

    As
    required by Rule 17j-1 of the Investment Company Act of 1940 and Rule 204A-1 under the Investment Advisers Act (as applicable), the Fund, its Adviser and its Distributor have adopted codes of ethics. These codes
    govern securities trading activities of investment personnel, Fund Trustees and certain other employees. Although they do permit these people to trade in securities, including those that the Fund could buy, as well as
    Shares of the Fund, they also contain significant safeguards designed to protect the Fund and its shareholders from abuses in this area, such as requirements to obtain prior approval for, and to report, particular
    transactions.




    Voting Proxies On Fund Portfolio
    Securities

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    Board has delegated to the Adviser authority to vote proxies on the securities held in the Fund's portfolio. The Board has also approved the Adviser's policies and procedures for voting the proxies, which are
    described below.

    Proxy Voting Policies

    The Adviser's general policy is to cast proxy votes in favor of management proposals and shareholder proposals that the Adviser anticipates will enhance the long-term value of the securities
    being voted. Generally, this will mean voting for proposals that the Adviser believes will improve the management of a company, increase the rights or preferences of the voted securities, or increase the chance that a
    premium offer would be made for the company or for the voted securities. This approach to voting proxy proposals will be referred to hereafter as the “General Policy.”

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    following examples illustrate how the General Policy may apply to management proposals and shareholder proposals submitted for approval or ratification by holders of the company's voting securities. However, whether
    the Adviser supports or opposes a proposal will always depend on the specific circumstances described in the proxy statement and other available information.

    On
    matters related to the board of directors, generally the Adviser will vote to elect nominees to the board in uncontested elections except in certain circumstances, such as where the director: (1) had not attended at
    least 75% of the board meetings during the previous year; (2) serves as the company's chief financial officer; (3) has committed himself or herself to service on a large number of boards, such that we deem it unlikely
    that the director would be able to commit sufficient focus and time to a particular company; (4) is the chair of the nominating or governance committee when the roles of chairman of the board and CEO are combined and
    there is no lead independent director; (5) served on the compensation committee during a period in which compensation appears excessive relative to performance and peers; or (6) served on a board that did not
    implement a shareholder proposal that Federated supported and received more than 50% shareholder support the previous year. In addition, the Adviser will generally vote in favor of; (7) a full slate of directors,
    where the directors are elected as a group and not individually, unless more than half of the nominees are not independent; (8) shareholder proposals to declassify the board of directors; (9) shareholder proposals to
    require a majority voting standard in the election of directors; (10) shareholder proposals to separate the roles of chairman of the board and CEO; and (11) a proposal to require a company's audit committee to be
    comprised entirely of independent directors.

    On other matters of corporate governance, generally the Adviser will vote in favor of: (1) proposals to grant shareholders the right to call a special meeting if owners of at least 25% of the
    outstanding stock agree; (2) a proposal to require independent tabulation of proxies and/or confidential voting of shareholders; (3) a proposal to ratify the board's selection of auditors, unless: (a) compensation for
    non-audit services exceeded 50% of the total compensation received from the company; or (b) the previous auditor was dismissed because of a disagreement with the company; (4) a proposal to repeal a shareholder rights
    plan (also known as a “poison pill”) and against the adoption of such a plan, unless the plan is designed to facilitate, rather than prevent, unsolicited offers for the company; (5) shareholder proposals
    to eliminate supermajority requirements in company bylaws; and (6) shareholder proposals calling for “Proxy Access,” that is, a bylaw change allowing shareholders owning at least 3% of the outstanding
    common stock for at least three years to nominate candidates for election to the board of directors. The Adviser will generally withhold support from shareholder proposals to grant shareholders the right to act by
    written consent, especially if they already have the right to call a special meeting.

    On
    environmental and social matters, generally the Adviser will vote in favor of shareholder proposals calling for: (1) enhanced disclosure of the company's approach to mitigating climate change and other environmental
    risks; (2) managing risks related to manufacturing or selling certain products, such as guns and opioids; (3) monitoring gender pay equity; and (4) achieving and maintaining diversity on the board of directors.
    Generally, the Adviser will not support shareholder proposals calling for limitations on political activity by the company, including political contributions, lobbying and memberships in trade associations.

    On
    matters of capital structure, generally the Adviser will vote against a proposal to authorize or issue shares that are senior in priority or voting rights to the voted securities, and in favor of a proposal to: (1)
    reduce the amount of shares authorized for issuance (subject to adequate provisions for outstanding convertible securities, options, warrants, rights and other existing obligations to issue shares); (2) grant
    authorities to issue shares with and without pre-emptive rights unless the size of the authorities would threaten to unreasonably dilute existing shareholders; and (3) authorize a stock repurchase program.




    On
    matters relating to management compensation, generally the Adviser will vote in favor of stock incentive plans (including plans for directors) that align the recipients of stock incentives with the interests of
    shareholders, without creating undue dilution, and against: (1) the advisory vote on executive compensation plans (“Say On Pay”) when the plan has failed to align executive compensation with corporate
    performance; (2) the advisory vote on the frequency of the Say On Pay vote when the frequency is other than annual; (3) proposals that would permit the amendment or replacement of outstanding stock incentives having
    more favorable terms (e.g., lower purchase prices or easier vesting requirements); and (4) executive compensation plans that do not disclose the maximum amounts of compensation that may be awarded or the criteria for
    determining awards.

    On matters relating to corporate transactions, the Adviser will generally vote in favor of mergers, acquisitions and sales of assets if the Adviser's analysis of the proposed business strategy
    and the transaction price would have a positive impact on the total return for shareholders.

    En
    addition, the Adviser will not vote any proxy if it determines that the consequences or costs of voting outweigh the potential benefit of voting. For example, if a foreign market requires shareholders voting proxies
    to retain the voted shares until the meeting date (thereby rendering the shares “illiquid” for some period of time), the Adviser will not vote proxies for such shares. In addition, the Adviser is not
    obligated to incur any expense to send a representative to a shareholder meeting or to translate proxy materials into English.

    To the
    extent that the Adviser is permitted to loan securities, the Adviser will not have the right to vote on securities while they are on loan. However, the Adviser will take all reasonable steps to recall shares prior to
    the record date when the meeting raises issues that the Adviser believes materially affect shareholder value, including, but not limited to, excessive compensation, mergers and acquisitions, contested elections and
    weak oversight by the audit committee. However, there can be no assurance that the Adviser will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon.

    Si
    proxies are not delivered in a timely or otherwise appropriate basis, the Adviser may not be able to vote a particular proxy.

    For an
    Adviser that employs a quantitative investment strategy for certain funds or accounts that does not make use of qualitative research (“Non-Qualitative Accounts”), the Adviser may not have the kind of
    research to make decisions about how to vote proxies for them. Therefore, the Adviser will vote the proxies of these Non-Qualitative Accounts as follows: (a) in accordance with the Standard Voting Instructions
    (defined below) adopted by the Adviser with respect to issues subject to the proxies; (b) if the Adviser is directing votes for the same proxy on behalf of a regular qualitative account and a Non-Qualitative Account,
    the Non-Qualitative Account would vote in the same manner as the regular qualitative account; (c) if neither of the first two conditions apply, as the proxy voting service is recommending; and (d) if none of the
    previous conditions apply, as recommended by the Proxy Voting Committee (“Proxy Committee”).

    Proxy Voting Procedures

    The Adviser has established a Proxy Voting Committee (“Proxy Committee”), to exercise all voting discretion granted to the Adviser by the Board in accordance with the proxy voting
    policies. To assist it in carrying out the day-to-day operations related to proxy voting, the Proxy Committee has created the Proxy Voting Management Group (PVMG). The day-to-day operations related to proxy voting are
    carried out by the Proxy Voting Operations Team (PVOT) and overseen by the PVMG. Besides voting the proxies, this work includes engaging with investee companies on corporate governance matters, managing the proxy
    voting service, soliciting voting recommendations from the Adviser's investment professionals, bringing voting recommendations to the Proxy Committee for approval, filing with regulatory agencies any required proxy
    voting reports, providing proxy voting reports to clients and investment companies as they are requested from time to time, and keeping the Proxy Committee informed of any issues related to corporate governance and
    proxy voting.

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    Adviser has compiled a list of specific voting instructions based on the General Policy (the “Standard Voting Instructions”). The Standard Voting Instructions and any modifications to them are approved by
    the Committee. The Standard Voting Instructions sometimes call for an investment professional to review the ballot question and provide a voting recommendation to the Committee (a “case-by-case vote”). En
    some situations, such as when the Fund owning the shares to be voted is managed according to a quantitative or index strategy, the investment professionals may not have the kind of research necessary to develop a
    voting recommendation. In those cases, the final vote would be determined as follows. If the investment professionals managing another fund or account are able to develop a voting recommendation for the ballot
    question, that final voting decision would also apply to the quantitative or index fund's proxy. Otherwise, the final voting decision would follow the voting recommendation of the proxy voting service (see below). los
    foregoing notwithstanding, the Committee always has the authority to determine a final voting decision.

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    Adviser has hired a proxy voting service to obtain, vote and record proxies in accordance with the directions of the Proxy Committee. The Proxy Committee has supplied the proxy voting services with the Standard Voting
    Instructions. The Proxy Committee retains the right to modify the Standard Voting Instructions at any time or to vote contrary to them at any time in order to cast proxy votes in a manner that the Proxy Committee
    believes is in accordance with the General Policy. The proxy




    voting
    service may vote any proxy as directed in the Standard Voting Instructions without further direction from the Proxy Committee. However, if the Standard Voting Instructions require case-by-case handling for a proposal,
    the PVOT will work with the investment professionals and the proxy voting service to develop a voting recommendation for the Proxy Committee and to communicate the Proxy Committee's final voting decision to the proxy
    voting service. Further, if the Standard Voting Instructions require the PVOT to analyze a ballot question and make the final voting decision, the PVOT will report such votes to the Proxy Committee on a quarterly
    basis for review.

    Conflicts of Interest

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    Adviser has adopted procedures to address situations where a matter on which a proxy is sought may present a potential conflict between the interests of the Fund (and its shareholders) and those of the Adviser or
    Distributor. This may occur where a significant business relationship exists between the Adviser (or its affiliates) and a company involved with a proxy vote.

    UN
    company that is a proponent, opponent, or the subject of a proxy vote, and which to the knowledge of the Proxy Committee has this type of significant business relationship, is referred to below as an “Interested
    Company.”

    The Adviser has implemented the following procedures in order to avoid concerns that the conflicting interests of the Adviser or its affiliates have influenced proxy votes. Any employee of the
    Adviser or its affiliates who is contacted by an Interested Company regarding proxies to be voted by the Adviser must refer the Interested Company to a member of the Proxy Committee, and must inform the Interested
    Company that the Proxy Committee has exclusive authority to determine how the proxy will be voted. Any Proxy Committee member contacted by an Interested Company must report it to the full Proxy Committee and provide a
    written summary of the communication. Under no circumstances will the Proxy Committee or any member of the Proxy Committee make a commitment to an Interested Company regarding the voting of proxies or disclose to an
    Interested Company how the Proxy Committee has directed such proxies to be voted. If the Standard Voting Instructions already provide specific direction on the proposal in question, the Proxy Committee shall not alter
    or amend such directions. If the Standard Voting Instructions require the Proxy Committee to provide further direction, the Proxy Committee shall do so in accordance with the proxy voting policies, without regard for
    the interests of the Adviser with respect to the Interested Company. If the Proxy Committee provides any direction as to the voting of proxies relating to a proposal affecting an Interested Company, it must disclose
    annually to the Fund's Board information regarding: the significant business relationship; any material communication with the Interested Company; the matter(s) voted on; and how, and why, the Adviser voted as it did.
    In certain circumstances it may be appropriate for the Adviser to vote in the same proportion as all other shareholders, so as to not affect the outcome beyond helping to establish a quorum at the shareholders'
    meeting. This is referred to as “proportional voting.” If the Fund owns shares of another Federated mutual fund, generally the Adviser will proportionally vote the client's proxies for that fund or seek
    direction from the Board or the client on how the proposal should be voted. If the Fund owns shares of an unaffiliated mutual fund, the Adviser may proportionally vote the Fund's proxies for that fund depending on the
    size of the position. If the Fund owns shares of an unaffiliated exchange-traded fund, the Adviser will proportionally vote the Fund's proxies for that fund.

    Downstream Affiliates

    Si el
    Proxy Committee gives further direction, or seeks to vote contrary to the Standard Voting Instructions, for a proxy relating to a portfolio company in which the Fund owns more than 10% of the portfolio company's
    outstanding voting securities at the time of the vote (Downstream Affiliate), the Proxy Committee must first receive guidance from counsel to the Proxy Committee as to whether any relationship between the Adviser and
    the portfolio company, other than such ownership of the portfolio company's securities, gives rise to an actual conflict of interest. If counsel determines that an actual conflict exists, the Proxy Committee must
    address any such conflict with the executive committee of the board of directors or trustees of any investment company client prior to taking any action on the proxy at issue.

    Proxy Advisers' Conflicts of
    Interest

    Proxy
    advisory firms may have significant business relationships with the subjects of their research and voting recommendations. For example, a proxy voting service client may be a public company with an upcoming
    shareholders' meeting and the proxy voting service has published a research report with voting recommendations. In another example, a proxy voting service board member also sits on the board of a public company for
    which the proxy voting service will write a research report. These and similar situations give rise to an actual or apparent conflict of interest.

    En
    order to avoid concerns that the conflicting interests of the engaged proxy voting service have influenced proxy voting recommendations, the Adviser will take the following steps:

    ■  A due diligence team made up of employees of the Adviser and/or its affiliates will meet with the proxy voting service on an annual basis and determine through a review of their policies and procedures
    and through inquiry that the proxy voting service has established a system of internal controls that provide reasonable assurance that their voting recommendations are not influenced by the business relationships they
    have with the subjects of their research.



    ■  Whenever the standard voting guidelines call for voting a proposal in accordance with the proxy voting service recommendation and the proxy voting service has disclosed that they have a conflict of
    interest with respect to that issuer, the PVOT will take the following steps: (a) the PVOT will obtain a copy of the research report and recommendations published by another proxy voting service for that issuer; (b)
    the Head of the PVOT, or his designee, will review both the engaged proxy voting service research report and the research report of the other proxy voting service and determine what vote will be cast. The PVOT will
    report all proxies voted in this manner to the Proxy Committee on a quarterly basis. Alternatively, the PVOT may seek direction from the Committee on how the proposal shall be voted.

    Proxy Voting Report

    UN
    report on “Form N-PX” of how the Fund voted any 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.

    Portfolio Holdings Information

    Information concerning the Fund's portfolio holdings is available via the link to the Fund and share class name at www.FederatedInvestors.com/FundInformation. A complete listing of the Fund's portfolio holdings as
    of the end of each month is posted on the website 15 days (or the next business day) after the end of the month and remains posted for six months thereafter. Summary portfolio composition information as of the close
    of each month is posted on the website 15 days (or the next business day) after month-end and remains posted until replaced by the information for the succeeding month. The summary portfolio composition information
    may include: identification of the Fund's top 10 holdings and a percentage breakdown of the portfolio by sector.

    You may also access portfolio information as of the end of the Fund's fiscal quarters via the link to the Fund and share class name at www.FederatedInvestors.com. The Fund's Annual Shareholder
    Report and Semi-Annual Shareholder Report contain complete listings of the Fund's portfolio holdings as of the end of the Fund's second and fourth fiscal quarters. Fiscal quarter information is made available on the
    website within 70 days after the end of the fiscal quarter. This information is also available in reports filed with the SEC at the SEC's website at www.sec.gov.

    Each
    fiscal quarter, the Fund will file with the SEC a complete schedule of its monthly portfolio holdings on “Form N-PORT.” The Fund's holdings as of the end of the third month of every fiscal quarter, as
    reported on Form N-PORT, will be publicly available on the SEC's website at www.sec.gov within 60 days of the end of the fiscal quarter upon filing. You may also access this information via the link to the Fund and
    share class name at www.FederatedInvestors.com.

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    disclosure policy of the Fund and the Adviser prohibits the disclosure of portfolio holdings information to any investor or intermediary before the same information is made available to other investors. Employees of
    the Adviser or its affiliates who have access to nonpublic information concerning the Fund's portfolio holdings are prohibited from trading securities on the basis of this information. Such persons must report all
    personal securities trades and obtain pre-clearance for all personal securities trades other than mutual fund shares.

    Firms
    that provide administrative, custody, financial, accounting, legal or other services to the Fund may receive nonpublic information about Fund portfolio holdings for purposes relating to their services. The Fund may
    also provide portfolio holdings information to publications that rate, rank or otherwise categorize investment companies. Traders or portfolio managers may provide “interest” lists to facilitate portfolio
    trading if the list reflects only that subset of the portfolio for which the trader or portfolio manager is seeking market interest. A list of service providers, publications and other third parties who may receive
    nonpublic portfolio holdings information appears in the Appendix to this SAI.

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    furnishing of nonpublic portfolio holdings information to any third party (other than authorized governmental or regulatory personnel) requires the prior approval of the President of the Adviser and of the Chief
    Compliance Officer of the Fund. The President of the Adviser and the Chief Compliance Officer will approve the furnishing of nonpublic portfolio holdings information to a third party only if they consider the
    furnishing of such information to be in the best interests of the Fund and its shareholders. In that regard, and to address possible conflicts between the interests of Fund shareholders and those of the Adviser and
    its affiliates, the following procedures apply. No consideration may be received by the Fund, the Adviser, any affiliate of the Adviser or any of their employees in connection with the disclosure of portfolio holdings
    information. Before information is furnished, the third party must sign a written agreement that it will safeguard the confidentiality of the information, will use it only for the purposes for which it is furnished
    and will not use it in connection with the trading of any security. Persons approved to receive nonpublic portfolio holdings information will receive it as often as necessary for the purpose for which it is provided.
    Such information may be furnished as frequently as daily and often with no time lag between the date of the information and the date it is furnished. The Board receives and reviews annually a list of the persons who
    receive nonpublic portfolio holdings information and the purposes for which it is furnished.




    Brokerage Transactions And
    Investment Allocation

    Equity
    securities may be traded in the over-the-counter market through broker/dealers acting as principal or agent, or in transactions directly with other investors. Transactions may also be executed on a securities exchange
    or through an electronic communications network. The Adviser seeks to obtain best execution of trades in equity securities by balancing the costs inherent in trading, including opportunity costs, market impact costs
    and commissions. As a general matter, the Adviser seeks to add value to its investment management by using market information to capitalize on market opportunities, actively seek liquidity and discover price. los
    Adviser continually monitors its trading results in an effort to improve execution. Fixed-income securities are generally traded in an over-the-counter market on a net basis (i.e., without commission) through dealers
    acting as principal or in transactions directly with the issuer. Dealers derive an undisclosed amount of compensation by offering securities at a higher price than they bid for them. Some fixed-income securities may
    have only one primary market maker. The Adviser seeks to use dealers it believes to be actively and effectively trading the security being purchased or sold, but may not always obtain the lowest purchase price or
    highest sale price with respect to a fixed-income security. The Adviser's receipt of research services (as described below) may also be a factor in the Adviser's selection of brokers and dealers. The Adviser may also
    direct certain portfolio trades to a broker that, in turn, pays a portion of the Fund's operating expenses. The Adviser makes decisions on portfolio transactions and selects brokers and dealers subject to review by
    the Fund's Board.

    Investment decisions for the Fund are made independently from those of other accounts managed by the Adviser and accounts managed by affiliates of the Adviser. Except as noted below, when the Fund and one or more of
    those accounts invests in, or disposes of, the same security, available investments or opportunities for sales will be allocated among the Fund and the account(s) in a manner believed by the Adviser to be equitable.
    While the coordination and ability to participate in volume transactions may benefit the Fund, it is possible that this procedure could adversely impact the price paid or received and/or the position obtained or
    disposed of by the Fund. Investments for Federated Kaufmann Fund and other accounts managed by that fund's portfolio managers in initial public offerings (IPO) are made independently from any other accounts, and much
    of their non-IPO trading may also be conducted independently from other accounts. Trading and allocation of investments, including IPOs, for accounts managed by Federated MDTA LLC are also made independently from the
    Fund. Investment decisions and trading for certain separately managed or wrap-fee accounts, and other accounts, of the Adviser and/or certain investment adviser affiliates of the Adviser also are generally made and
    conducted independently from the Fund. It is possible that such independent trading activity could adversely impact the prices paid or received and/or positions obtained or disposed of by the Fund.

    Brokerage and Research Services

    Brokerage services include execution of trades and products and services that relate to the execution of trades, including communications services related to trade execution, clearing and settlement, trading
    software used to route orders to market centers, software that provides algorithmic trading strategies and software used to transmit orders to direct market access (DMA) systems. Research services may include: advice
    as to the advisability of investing in securities; security analysis and reports; economic studies; industry studies; receipt of quotations for portfolio evaluations; and similar services. Research services assist the
    Adviser and its affiliates in terms of their overall investment responsibilities to funds and investment accounts for which they have investment discretion. However, particular brokerage and research services received
    by the Adviser and its affiliates may not be used to service every fund or account, and may not benefit the particular funds and accounts that generated the brokerage commissions. In addition, brokerage and research
    services paid for with commissions generated by the Fund may be used in managing other funds and accounts. To the extent that receipt of these services may replace services for which the Adviser or its affiliates
    might otherwise have paid, it would tend to reduce their expenses. The Adviser and its affiliates exercise reasonable business judgment in selecting brokers to execute securities transactions where receipt of research
    services is a factor. They determine in good faith that commissions charged by such persons are reasonable in relationship to the value of the brokerage and research services provided.

    For the fiscal year ended October 31, 2019, the Fund's Adviser directed brokerage transactions to certain brokers in connection with the Adviser's receipt of research services. The total amount
    of these transactions was $1,807,607 for which the Fund paid $13,792 in brokerage commissions.

    Administrator

    Federated Administrative Services (FAS), a subsidiary of Federated, provides administrative personnel and services, including certain legal, compliance, recordkeeping and financial reporting services
    (“Administrative Services”), necessary for the operation of the Fund. FAS provides Administrative Services for a fee based upon the rates set forth below paid on the average daily net assets of the Fund.
    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 with FAS. FAS is also
    entitled to reimbursement for certain out-of-pocket expenses incurred in providing Administrative Services to the Fund.




    Administrative Services
    Fee Rate
    Average Daily Net Assets
    of the Investment Complex
    0.100 of 1% on assets up to $50 billion
    0.075 of 1% on assets over $50 billion

    Custodian

    Estado
    Street Bank and Trust Company, Boston, Massachusetts, is custodian for the securities and cash of the Fund. Foreign instruments purchased by the Fund are held by foreign banks participating in a network coordinated by
    State Street Bank and Trust Company.

    Transfer Agent And Dividend
    Disbursing Agent

    Estado
    Street Bank and Trust Company, the Fund's registered transfer agent, maintains all necessary shareholder records.

    Independent Registered Public
    Accounting Firm

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    independent registered public accounting firm for the Fund, Ernst & Young LLP, conducts its audits in accordance with the standards of the Public Company Accounting Oversight Board (United States), which require
    it to plan and perform its audits to provide reasonable assurance about whether the Fund's financial statements and financial highlights are free of material misstatement.

    Fees Paid by the Fund for
    Services

    For the Year Ended October 31 2019 2018 2017
    Advisory Fee Earned $25,908,154 $27,112,174 $25,048,315
    Advisory Fee Waived PS1,111,098 PS1,251,322 PS1,794,725
    Advisory Fee Reimbursed PS119,710 PS134,220 PS205,768
    Net Administrative Fee PS5,148,987 PS5,432,608 PS4,939,375
    Brokerage Commission PS13,792 PS– PS–

    Securities Lending Activities

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    services provided to the Fund by Citibank, N.A. as securities lending agent may include the following: selecting securities previously identified by the Fund as available for loan to be loaned; locating borrowers
    identified in the securities lending agency agreement; negotiating loan terms; monitoring daily the value of the loaned securities and collateral; requiring additional collateral as necessary; marking to market
    non-cash collateral; instructing the Fund's custodian with respect to the transfer of loaned securities; indemnifying the Fund in the event of a borrower default; and arranging for return of loaned securities to the
    Fund at loan termination.

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    Fund did not participate in any securities lending activities during the Fund's most recently completed fiscal year.

    Gross income from securities lending activities $00.00
    Fees and/or compensation for securities lending activities and related services
    Fees paid to securities lending agent from a revenue split $00.00
    Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment
    vehicle) that are not included in the revenue split
    –
    Administrative fees not included in revenue split –
    Indemnification fee not included in revenue split –
    Rebate (paid to borrower) $00.00
    Other fees not included in revenue split (specify) –
    Aggregate fees/compensation for securities lending activities $00.00
    Net income from securities lending activities $00.00

    Financial Information

    The Financial Statements for the Fund for the fiscal year ended October 31, 2019, are incorporated herein by reference to the Annual Report to Shareholders of Federated Institutional High Yield
    Bond Fund dated October 31, 2019.




    Investment Ratings

    Standard & Poor's Rating
    Services (S&P) LONG-TERM Issue RATINGS

    Issue
    credit ratings are based, in varying degrees, on S&P's analysis of the following considerations: the likelihood of payment-capacity and willingness of the obligor to meet its financial commitment on an obligation
    in accordance with the terms of the obligation; the nature of and provisions of the obligation; and the protection afforded by, and relative position of, the obligation in the event of bankruptcy, reorganization, or
    other arrangement under the laws of bankruptcy and other laws affecting creditors' rights.

    AAA—An obligation rated “AAA” has the highest rating assigned by S&P. The obligor's capacity to meet its financial commitment on the obligation is extremely
    strong.

    AA—An obligation rated “AA” differs from the highest rated obligations only to a small degree. The obligor's capacity to meet its financial commitment on the obligation is
    very strong.

    UN—An obligation rated “A” is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated
    categories. However, the obligor's capacity to meet its financial commitment on the obligation is still strong.

    BBB—An obligation rated “BBB” exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened
    capacity of the obligor to meet its financial commitment on the obligation.

    Obligations rated “BB,” “B,” “CCC,” “CC” and “C” are regarded as having significant speculative characteristics. “BB” indicates the least
    degree of speculation and “C” the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse
    conditions.

    BB—An obligation rated “BB” is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business,
    financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.

    si—An obligation rated “B” is more vulnerable to nonpayment than obligations rated “BB,” but the obligor currently has the capacity to meet its financial
    commitment on the obligation. Adverse business, financial or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation.

    CCC—An obligation rated “CCC” is currently vulnerable to nonpayment, and is dependent upon favorable business, financial and economic conditions for the obligor to meet its
    financial commitment on the obligation. In the event of adverse business, financial or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation.

    CC—An obligation rated “CC” is currently highly vulnerable to nonpayment.

    C—A “C” rating is assigned to obligations that are currently highly vulnerable to nonpayment, obligations that have payment arrearages allowed by the terms of the
    documents, or obligations of an issuer that is the subject of a bankruptcy petition or similar action which have not experienced a payment default. Among others, the “C” rating may be assigned to
    subordinated debt, preferred stock or other obligations on which cash payments have been suspended in accordance with the instrument's terms or when preferred stock is the subject of a distressed exchange offer,
    whereby some or all of the issue is either repurchased for an amount of cash or replaced by other instruments having a total value that is less than par.

    re—An obligation rated “D” is in payment default. The “D” rating category is used when payments on an obligation are not made on the date due, unless S&P
    believes that such payments will be made within five business days, irrespective of any grace period. The “D” rating also will be used upon the filing of a bankruptcy petition or the taking of similar
    action if payments on an obligation are jeopardized. An obligation's rating is lowered to “D” upon completion of a distressed exchange offer, whereby some or all of the issue is either repurchased for an
    amount of cash or replaced by other instruments having a total value that is less than par.

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    ratings from “AA” to “CCC” may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

    S&P Rating Outlook

    An S&
    P rating outlook assesses the potential direction of a long-term credit rating over the intermediate term (typically six months to two years). In determining a rating outlook, consideration is given to any changes in
    the economic and/or fundamental business conditions.

    Positive—Positive means that a rating may be raised.

    Negative—Negative means that a rating may be lowered.

    Stable—Stable means that a rating is not likely to change.

    Developing—Developing means a rating may be raised or lowered.




    N.M.—N.M. means not meaningful.

    S&P Short-Term Issue
    RATINGS

    Short-term ratings are generally assigned to those obligations considered short-term in the relevant market. In the United States, for example, that means obligations with an original maturity of no more than 365
    days–including commercial paper.

    A-1—A short-term obligation rated “A-1” is rated in the highest category by S&P. The obligor's capacity to meet its financial commitment on the obligation is strong.
    Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor's capacity to meet its financial commitment on these obligations is extremely strong.

    A-2—A short-term obligation rated “A-2” is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher
    rating categories. However, the obligor's capacity to meet its financial commitment on the obligation is satisfactory.

    A-3—A short-term obligation rated “A-3” exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a
    weakened capacity of the obligor to meet its financial commitment on the obligation.

    si—A short-term obligation rated “B” is regarded as vulnerable and has significant speculative characteristics. The obligor currently has the capacity to meet its financial
    commitments; however, it faces major ongoing uncertainties which could lead to the obligor's inadequate capacity to meet its financial commitments.

    C—A short-term obligation rated “C” is currently vulnerable to nonpayment and is dependent upon favorable business, financial and economic conditions for the obligor to
    meet its financial commitment on the obligation.

    re—A short-term obligation rated “D” is in payment default. The “D” rating category is used when payments on an obligation are not made on the date due, unless
    S&P believes that such payments will be made within any stated grace period. However, any stated grace period longer than five business days will be treated as five business days. The “D” rating also
    will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized.

    MOODY'S Investor Services, Inc.
    (MOODY's) LONG-TERM RATINGS

    Moody's
    long-term ratings are assigned to issuers or obligations with an original maturity of one year or more and reflect both on the likelihood of a default on contractually promised payments and the expected financial loss
    suffered in the event of default.

    Aaa—Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk.

    Aa—Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.

    UN—Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.

    Baa—Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics.

    Ba—Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.

    si—Obligations rated B are considered speculative and are subject to high credit risk.

    Caa—Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk.

    Ca—Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.

    C—Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of principal or interest.

    Moody's
    appends numerical modifiers 1, 2 and 3 to each generic rating classification from Aaa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2
    indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.

    MOODY'S Short-Term RATINGS

    Moody's
    short-term ratings are assigned to obligations with an original maturity of 13 months or less and reflect the likelihood of a default on contractually promised payments.

    P-1—Issuers (or supporting institutions) rated P-1 have a superior ability to repay short-term debt obligations.

    P-2—Issuers (or supporting institutions) rated P-2 have a strong ability to repay short-term debt obligations.

    P-3—Issuers (or supporting institutions) rated P-3 have an acceptable ability to repay short-term obligations.

    NP—Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating categories.




    FITCH, INC. (Fitch) LONG-TERM
    Debt RATINGs

    Fitch
    long-term ratings report Fitch's opinion on an entity's relative vulnerability to default on financial obligations. The “threshold” default risk addressed by the rating is generally that of the financial
    obligations whose non-payment would best reflect the uncured failure of that entity. As such, Fitch long-term ratings also address relative vulnerability to bankruptcy, administrative receivership or similar concepts,
    although the agency recognizes that issuers may also make pre-emptive and therefore voluntary use of such mechanisms.

    AAA: Highest Credit Quality—“AAA” ratings denote the lowest expectation of default risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This
    capacity is highly unlikely to be adversely affected by foreseeable events.

    AA: Very High Credit
    Quality—“AA” ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly
    vulnerable to foreseeable events.

    A: High Credit
    Quality—“A” ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more
    vulnerable to adverse business or economic conditions than is the case for higher ratings.

    BBB: Good Credit
    Quality—“BBB” ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business
    or economic conditions are more likely to impair this capacity.

    BB: Speculative—“BB” ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however,
    business or financial flexibility exists which supports the servicing of financial commitments.

    B: Highly Speculative—“B” ratings indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for
    continued payment is vulnerable to deterioration in the business and economic environment.

    CCC: Substantial Credit
    Risk—Default is a real possibility.

    CC: Very High Levels of
    Credit Risk—Default of some kind appears probable.

    C: Exceptionally High
    Levels of Credit Risk—Default is imminent or inevitable, or the issuer is in standstill. Conditions that are indicative of a “C” category rating for an issuer include: (a) the issuer has
    entered into a grace or cure period following non-payment of a material financial obligation; (b) the issuer has entered into a temporary negotiated waiver or standstill agreement following a payment default on a
    material financial obligation; or (c) Fitch otherwise believes a condition of “RD” or “D” to be imminent or inevitable, including through the formal announcement of a distressed debt
    exchange.

    RD: Restricted
    Default—“RD” ratings indicate an issuer that in Fitch's opinion has experienced an uncured payment default on a bond, loan or other material financial obligation but which has
    not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, and which has not otherwise ceased operating. This would include: (a) the selective payment default
    on a specific class or currency of debt; (b) the uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a bank loan, capital markets security or other
    material financial obligation; (c) the extension of multiple waivers or forbearance periods upon a payment default on one or more material financial obligations, either in series or in parallel; or (d) execution of a
    distressed debt exchange on one or more material financial obligations.

    D: Default—“D” ratings indicate an issuer that in Fitch's opinion has entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up
    procedure, or which has otherwise ceased business.

    Default
    ratings are not assigned prospectively to entities or their obligations; within this context, non-payment on an instrument that contains a deferral feature or grace period will generally not be considered a default
    until after the expiration of the deferral or grace period, unless a default is otherwise driven by bankruptcy or other similar circumstance, or by a distressed debt exchange.

    “Imminent” default typically refers to
    the occasion where a payment default has been intimated by the issuer, and is all but inevitable. This may, for example, be where an issuer has missed a scheduled payment, but (as is typical) has a grace period during
    which it may cure the payment default. Another alternative would be where an issuer has formally announced a distressed debt exchange, but the date of the exchange still lies several days or weeks in the immediate
    future.

    In all
    cases, the assignment of a default rating reflects the agency's opinion as to the most appropriate rating category consistent with the rest of its universe of ratings, and may differ from the definition of default
    under the terms of an issuer's financial obligations or local commercial practice.




    FITCH SHORT-TERM DEBT RATINGs

    A Fitch short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated entity or security stream and relates to the capacity to meet
    financial obligations in accordance with the documentation governing the relevant obligation. Short-Term Ratings are assigned to obligations whose initial maturity is viewed as “short-term” based on market
    convention. Typically, this means up to 13 months for corporate, sovereign and structured obligations, and up to 36 months for obligations in U.S. public finance markets.

    F1: Highest Short-Term Credit
    Quality—Indicates the strongest intrinsic capacity for timely payment of financial commitments; may have an added “+” to denote any exceptionally strong credit feature.

    F2: Good Short-Term Credit
    Quality—Good intrinsic capacity for timely payment of financial commitments.

    F3: Fair Short-Term Credit
    Quality—The intrinsic capacity for timely payment of financial commitments is adequate.

    B: Speculative Short-Term
    Credit Quality—Minimal capacity for timely payment of financial commitments, plus heightened vulnerability to near-term adverse changes in financial and economic conditions.

    C: High Short-Term Default
    Risk—Default is a real possibility.

    RD: Restricted
    Default—Indicates an entity that has defaulted on one or more of its financial commitments, although it continues to meet other financial obligations. Applicable to entity ratings
    only.

    D: Default—Indicates a broad-based default event for an entity, or the default of a short-term obligation.

    A.M. BEST Company, Inc. (a.m.
    best) LONG-TERM DEBT and Preferred Stock RATINGS

    UN
    Best's long-term debt rating is Best's independent opinion of an issuer/entity's ability to meet its ongoing financial obligations to security holders when due.

    aaa: Exceptional—Assigned to issues where the issuer has an exceptional ability to meet the terms of the obligation.

    aa: Very Strong—Assigned to issues where the issuer has a very strong ability to meet the terms of the obligation.

    a: Strong—Assigned to issues where the issuer has a strong ability to meet the terms of the obligation.

    bbb: Adequate—Assigned to issues where the issuer has an adequate ability to meet the terms of the obligation; however, the issue is more susceptible to changes in economic or other
    conditions.

    bb: Speculative—Assigned to issues where the issuer has speculative credit characteristics, generally due to a modest margin or principal and interest payment protection and vulnerability to
    economic changes.

    b: Very Speculative—Assigned to issues where the issuer has very speculative credit characteristics, generally due to a modest margin of principal and interest payment protection and extreme
    vulnerability to economic changes.

    ccc, cc, c: Extremely
    Speculative—Assigned to issues where the issuer has extremely speculative credit characteristics, generally due to a minimal margin of principal and interest payment protection and/or limited
    ability to withstand adverse changes in economic or other conditions.

    d: In Default—Assigned to issues in default on payment of principal, interest or other terms and conditions, or when a bankruptcy petition or similar action has been filed.

    Ratings
    from “aa” to “ccc” may be enhanced with a “+” (plus) or “-” (minus) to indicate whether credit quality is near the top or bottom of a category.

    A.M. BEST SHORT-TERM DEBT
    RATINGS

    UN
    Best's short-term debt rating is Best's opinion of an issuer/entity's ability to meet its financial obligations having original maturities of generally less than one year, such as commercial paper.

    AMB-1+ Strongest—Assigned to issues where the issuer has the strongest ability to repay short-term debt obligations.

    AMB-1 Outstanding—Assigned to issues where the issuer has an outstanding ability to repay short-term debt obligations.

    AMB-2 Satisfactory—Assigned to issues where the issuer has a satisfactory ability to repay short-term debt obligations.

    AMB-3 Adequate—Assigned to issues where the issuer has an adequate ability to repay short-term debt obligations; however, adverse economic conditions likely will reduce the issuer's capacity to
    meet its financial commitments.

    AMB-4 Speculative—Assigned to issues where the issuer has speculative credit characteristics and is vulnerable to adverse economic or other external changes, which could have a marked impact on the
    company's ability to meet its financial commitments.

    d: In Default—Assigned to issues in default on payment of principal, interest or other terms and conditions, or when a bankruptcy petition or similar action has been filed.




    A.M. Best Rating Modifiers

    Both
    long- and short-term credit ratings can be assigned a modifier.

    u—Indicates the rating may change in the near term, typically within six months. Generally is event-driven, with positive, negative or developing implications.

    pd—Indicates ratings assigned to a company that chose not to participate in A.M. Best's interactive rating process. (Discontinued in 2010).

    i—Indicates rating assigned is indicative.

    A.M. BEST RATING OUTLOOK

    A.M.
    Best Credit Ratings are assigned a Rating Outlook that indicates the potential direction of a credit rating over an intermediate term, generally defined as the next 12 to 36 months.

    Positive —Indicates possible ratings upgrade due to favorable financial/market trends relative to the current trading level.

    Negative —Indicates possible ratings downgrade due to unfavorable financial/market trends relative to the current trading level.

    Stable—Indicates low likelihood of rating change due to stable financial/market trends.

    Not Rated

    Certain
    nationally recognized statistical rating organizations (NRSROs) may designate certain issues as NR, meaning that the issue or obligation is not rated.




    Addresses

    Federated Institutional High
    Yield Bond Fund

    Institutional Shares
    Class R6 Shares

    Federated Investors
    Funds
    4000 Ericsson Drive
    Warrendale, PA 15086-7561

    Distributor

    Federated Securities
    Corp.
    Federated Investors Tower
    1001 Liberty Avenue
    Pittsburgh, PA 15222-3779

    Investment Adviser

    Federated Investment
    Management Company
    Federated Investors Tower
    1001 Liberty Avenue
    Pittsburgh, PA 15222-3779

    Custodian

    State Street Bank and
    Trust Company
    1 Iron Street
    Boston, MA 02110

    Transfer Agent and Dividend
    Disbursing Agent

    State Street Bank and
    Trust Company
    CORREOS. Box 219318
    Kansas City, MO 64121-9318

    Independent Registered Public
    Accounting Firm

    Ernst & Young LLP
    200 Clarendon Street
    Boston, MA 02116-5072




    Appendix

    The following is a list
    of persons, other than the Adviser and its affiliates, that have been approved to receive nonpublic portfolio holdings information concerning the Federated Fund Complex; however, certain persons below might not
    receive such information concerning the Fund:

    CUSTODIAN(S)

    State Street Bank and Trust Company

    INDEPENDENT REGISTERED PUBLIC
    ACCOUNTING FIRM

    Ernst & Young LLP

    LEGAL COUNSEL

    Goodwin Procter LLP
    K&L Gates LLP

    Financial Printer(S)

    Donnelley Financial Solutions

    Proxy Voting Administrator

    Glass Lewis & Co., LLC

    SECURITY PRICING SERVICES

    Bloomberg L.P.
    IHS Markit (Markit North America)
    ICE Data Pricing & Reference Data, LLC
    JPMorgan PricingDirect
    Refinitiv US Holdings Inc.

    RATINGS AGENCIES

    Fitch, Inc.
    Moody's Investors Service, Inc.
    Standard & Poor's Financial Services LLC

    Other SERVICE PROVIDERS

    Other types of service providers that
    have been approved to receive nonpublic portfolio holdings information include service providers offering, for example, trade order management systems, portfolio analytics, or performance and accounting systems, such
    as:

    Bank of
    America Merrill Lynch
    Barclays Inc.
    Bloomberg L.P.
    Citibank, N.A.
    Electra Information Systems
    FactSet Research Systems Inc.
    FISGlobal
    Informa Investment Solutions, Inc.
    Institutional Shareholder Services
    Investortools, Inc.
    MSCI ESG Research LLC
    Sustainalytics U.S. Inc.
    The Yield Book, Inc.
    Wolters Kluwer N.V.

    Item 28. Exhibits

    (a)
    1 Conformed copy of Amended and Restated Declaration of Trust of the Registrant; (2)
    2 Amendment No. 3 (10)
    3 Amendment No. 4 (7)
    4 Amendment No. 5 (8)
    5 5 Amendment No. 6 (10)
    6 Amendment No. 7 (11)
    7 Amendment No. 8 (12)
    8 Amendment No. 9 (17)
    9 Amendment No. 10 (25)
    10 Amendment No. 11 (32)
    11 Amendment No. 12 (41)
    12 Amendment No. 13 (44)
    13 Amendment No. 14 (47)

    (b)
    1 Copy of By-Laws of the Registrant; (2)
    2 Amendment Nos. 1-4 (7)
    3 Amendment No. 5 (11)
    4 Amendment No. 6 (13)
    5 5 Amendment No. 7 (15)
    6 Amendment No. 8 (18)
    7 Amendment No. 9 (19)
    8 Amendment No. 10 (35)
    9 Amendment No. 11 (51)

    (c)

    Copy of Specimen Certificate for Shares of Beneficial Interest
            of the Registrant;

    As of September 1, 1997, Federated Securities Corp. stopped
            issuing share certificates.

    (2)

    (d)
    1 Conformed copy of Investment Advisory Contract of the Registrant (including Exhibit A) of the Registrant; (3)
    2 Conformed copy of Amendment to the Investment Advisory Contract of the Registrant; (9)
    2(a) Conformed copy of Amendment 1 to Exhibit A to the Investment Advisory Contract of the Registrant (49)
    2(b) Conformed Copy of Amendment #2 to Exhibit A to the Investment Advisory Contract dated June 1, 2018. (51)
    3 Conformed copy of Exhibit B to the Investment Advisory Contract of the Registrant; (10)
    3(a) Conformed copy of Exhibit C to the Investment Advisory Contract of the Registrant; (16)
    4 Conformed copy of Investment Advisory Contract of the Registrant revised June 2013; (34)
    4(a) Conformed copy of Investment Advisory Contract of the Registrant revised January 31, 2014; (37)
    (e)
    1 Conformed copy of Distributor's Contract of the Registrant (including Exhibit A) of the Registrant; (3)
    1(b) Conformed copy of Amendment to the Distributor’s Contract of the Registrant; (9)
    1(c) Amendment to the Distributor’s Contact of the Registrant; (13)
    1(d) Conformed copy of Amendment #1 to Exhibit B and Exhibit F to the Distributor’s Contract of the Registrant; (25)
    1(e) Conformed copy of Distributor's Contract of the Registrant of the Registrant revised January 31, 2014; (37)
    2 Conformed copy of Exhibit B to the Distributor’s Contract of the Registrant: (6)
    2(a) Conformed copy of Exhibit C and Exhibit D to the Distributor’s Contract of the Registrant; (12)
    2(b) Conformed copy of Exhibits E and F to the Distributor’s Contract of the Registrant; (16)
    2(c) Conformed copy of Exhibit J to the Distributor's Contract of the Registrant of the Registrant; (47)
    2(d) Conformed copy of Exhibit K to the Distributor's Contract of the Registrant of the Registrant (49)

    (g)
    1 Conformed copy of Custodian Contract of the Registrant; (3)
    1(a) Conformed copy of Amendments to the Custodian Contract of the Registrant; (31)
    1(b) Conformed copy of Amendment to the Custodian Contract of the Registrant; (10)
    2 Conformed copy of Custodian Fee Schedule; (5)
    3 Copy of Exhibit 1 to the Custodian Contract (Revised 9/19/14)of the Registrant; (37)
    3(a) Copy of Exhibit 1 to the Custodian Contract (Revised 6/26/15) of the Registrant; (39)
    4 Conformed copy of Appendix A  to the Amended and Restated Master Custodian Agreement (State Street Bank and Trust Company), as amended on August 1, 2017 (49)
    4(a) Conformed copy of Appendix A to the Amended and Restated Master Custodian Agreement (State Street Bank and Trust Company), as amended on December 10, 2017 (51)

    (h)
    1 Conformed copy of Amended and Restated Agreement for Fund Accounting Services, Administrative Services, Transfer Agency Services, and Custody Services Procurement; (7)
    2 Conformed copy of Amendment to the Agreement for Fund Accounting Services, Administrative Services, Transfer Agency Services, and Custody Services Procurement; (9)
    3 The responses described in Item 23(e)(iv) are hereby incorporated by reference.
    4 The Registrant hereby incorporates by reference the conformed copy of the Agreement for Administrative Services, with Exhibit 1 and Amendments 1 and 2 attached, between Federated Administrative Services and the Registrant from Item 23(h)(iv) of the Federated Total Return Series, Inc. Registration Statement on Form N-1A, filed with the Commission on November 29, 2004. (File Nos. 33-50773 and 811-7115);
    5 5 The Registrant hereby incorporates the conformed copy of the Second Amended and Restated Services Agreement, with attached Schedule 1 revised 6/30/04, from Item (h) (vii) of the Cash Trust Series, Inc. Registration Statement on Form N-1A, filed with the Commission on July 29, 2004. (Files Nos. 33-29838 and 811-5843);
    6 The Registrant hereby incorporates the conformed copy of the Financial Administration and Accounting Services Agreement, with attached Exhibit A revised 6/30/04, from Item (h)(viii) of the Cash Trust Series, Inc. Registration Statement on Form N-1A filed with the Commission on July 29, 2004. (File Nos. 33-29838 and 811-5843)
    7 The Registrant hereby incorporates the conformed copy of Transfer Agency and Service Agreement between the Federated Funds and State Street Bank and Trust Company from Item 23(h)(ix)of the Federated Total Return Government Bond Fund Registration Statement on Form N-1A, filed with the Commission on April 28, 2005. (File Nos. 33-60411 and 811-07309)
    8 The Registrant hereby incorporates by reference the conformed copy of Amendment No. 3 to the Agreement for Administrative Services between Federated Administrative Services Company and the Registrant dated June 1, 2005, from Item 23 (h) (ii) of the Cash Trust Series, Inc. Registration Statement on Form N-1A, filed with the Commission on July 27, 2005. (File Nos. 33-29838 and 811-5843)
    9 Copy of Schedule 1, revised 9/1/05, to the Second Amended and Restated Services Agreement; (17)
    10 Copy of Exhibit A, revised 9/1/05, to the Financial Administration and Accounting Services Agreement; (17)
    11 Copy of Exhibit A, revised 6/1/05, to the Transfer Agency Agreement between the Federated Funds and State Street Bank and Trust Company; (17)
    12 The Registrant hereby incorporates the conformed copy of Transfer Agency and Service Agreement between the Federated Funds and State Street Bank and Trust Company from Item 23(h)(viii)of the Federated Total Return Government Bond Fund Registration Statement on Form N-1A, filed with the Commission on April 28, 2006. (File Nos. 33-60411 and 811-07309)
    13 Conformed copy of Financial Administration Accounting and Services Agreement, dated January 1, 2007; (23)
    14 Conformed copy of Amendment to Transfer Agency and Services Agreement, dated January 1, 2008; (26)
    15 Conformed copy of Agreement for Administrative Services dated 11/1/2003 with Amendments 1 through 5 and Exhibit 1 attached (30)
    16 Conformed copy of Transfer Agency and Service Agreement dated 7/1/2004 with Amendment dated 1/1/2008, Amendment 1 dated 10/10/2005 and Schedules 2.1, 2.2(f), 2.2(g), 2.2(h) and 2.4 attached (30)
    17 Conformed copy of Second Amended and Restated Service Agreement dated 12/1/2001 with Schedule 1 attached (30)
    18 Conformed copy of Financial Administration and Accounting Services Agreement, dated March 25, 2011; (31)
    19 Conformed copy of Amended and Restated Agreement for Administrative Services dated 09/01/2012; (33)
    20 Conformed copy of First Amendment to the Amended and Restated Agreement for Administrative Services dated 09/01/2012; (34)
    21 Conformed copy of Second Amended and Restated Service Agreement dated 9/1/2014 with Schedule 1 attached; (37)
    22 Copy of Exhibit A, revised 9/19/14, to the Financial Administration and Accounting Services Agreement; (37)
    23 Copy of Exhibit 1, revised 9/19/14, to the Agreement for Administrative Services. (37)
    24 Conformed copy of Schedule A to Transfer Agency and Services Agreement, dated July 1, 2004 (Revised 9/1/14); (37)
    25 Copy of Exhibit 1, revised 9/1/15, to the Agreement for Administrative Services; (39)
    26 Copy of Exhibit A, revised 3/1/15, to the Financial Administration and Accounting Services Agreement; (39)
    27 Copy of Schedule 1 to the Second Amended and Restated Services Agreement, revised 9/1/15; (39)
    28 Conformed copy of Amendments to the Financial Administration and Accounting Services Agreement Dated March 1, 2015 and October 14, 2015; (41)
    29 Conformed copy of Second Amended and Restated Agreement for Administrative Services dated September 1, 2017 (48)
    30 Copy of Schedule 1 to the Second Amended and Restated Services Agreement revised August 1, 2017; (49)
    31 Copy of Exhibit A to the Financial Administration Accounting and Services Agreement (revised September 1, 2017); (49)
    32 Conformed copy of Services Agreement between FIMCO and FASC, revised August 1, 2017 (49)
    33 Conformed copy of Exhibit A to the Transfer Agency and Services Agreement (revised August 1, 2017) (49)
    34 Copy of Exhibit A and Exhibit B to the Second Amended and Restated Agreement for Administrative Services, revised as of September 1, 2018 (51)
    35 Copy of Schedule 1 to Second Amended and Restated Services Agreement, revised September 1, 2018 (51)
    36 Copy of Exhibit A to the Financial Administration Accounting and Services Agreement (revised September 1, 2018) Includes conformed copy of the Amendment to Financial Administration and Accounting Services Agreement dated March 5, 2018 with Schedule A, Exhibit 1/Schedule B, Schedule B1, Schedule B2, Schedule B6, and conformed copy of Annex I to Schedule B6 (51)
    37 Conformed copy of Exhibit A to the Transfer Agency and Services Agreement (revised June 1, 2018) (51)
    38 Conformed Copy of Exhibit A to the Financial Administration Accounting and Services Agreement (revised October 1, 2018) (52)
    39 Conformed copy of Exhibit A to Second Amended and Restated Agreement for Administrative Services dated (revised October 1, 2018) (52)
    40 Copy of Schedule 1 to Second Amended and Restated Services Agreement, revised June 1, 2019 (54)
    41 Copy of Schedule 1 to Second Amended and Restated Services Agreement, revised December 1, 2019 (+)

    (i) Conformed copy of Opinion and Consent of Counsel as to legality of shares being registered; (2)

    (j)
    1 Conformed copy of Consent of Independent Registered Public Accounting Firm Ernst & Young LLP; (+)
    2 Conformed copy of Consent of Independent Registered Public Accounting Firm KPMG LLP (55)

    (l) Conformed copy of Initial Capital Understanding; (2)

    (m)
    1 Conformed copy of Distribution Plan (including Exhibits A and B) of the Registrant; (14)
    2 The responses described in Item 23(e)(iv) are hereby incorporated by reference.
    3 Conformed copy of Exhibit C to the Distribution Plan of the Registrant; (17)
    4 Conformed copy of Amendment #1 to Exhibit A and Exhibit C to the Distributor’s Plan of the Registrant; (25)
    5 5 Conformed copy of Distribution Plan (including Exhibits D and E)of the Registrant revised January 31, 2014; (37)

    (n)
    1 Copy of the Multiple Class Plan and attached Exhibits of the Registrant; (17)
    2 Copy of Class A Shares Exhibit to Multiple Class Plan; (24)
    2(a) Copy of Class A Shares Exhibit to Multiple Class Plan (revised 2/21/11) (31)
    2(b) Copy of Class A Shares Exhibit to Multiple Class Plan (revised 9/1/13) (34)
    2(c) Copy of Class A Shares Exhibit to Multiple Class Plan (revised 9/1/14); (37)
    2(d) Copy of Class A Shares Exhibit to Multiple Class Plan (revised 9/1/15); (39)
    2(e) Copy of Class A Shares Exhibit to Multiple Class Plan (revised 12/31/15); (42)
    2(f) Copy of Class A Shares Exhibit to Multiple Class Plan (revised 6/1/17; (48)
    2(g) Copy of Class A Shares Exhibit to Multiple Class Plan (revised 10/1/2017); (49)
    2(h) Copy of Class A Shares Exhibit to the Multiple Class Plan (revised 9/1/2018); (51)
    2(i) Copy of Class A Shares Exhibit to the Multiple Class Plan (revised 12/1/2018); (53)
    2(j) Copy of Class A Shares Exhibit to the Multiple Class Plan (revised 6/1/2019); (54)
    3 Copy of Class B Shares Exhibit to Multiple Class Plan; (24)
    3(a) Copy of Class B Shares Exhibit to Multiple Class Plan (revised 4/22/13); (34)
    4 Copy of Class C Shares Exhibit to Multiple Class Plan; (24)
    4(a) Copy of Class C Shares Exhibit to Multiple Class Plan (revised 4/22/13); (34)
    5 5 Copy of Class F Shares Exhibit to Multiple Class Plan (revised 12/1/12); (34)
    6 Copy of Class R Shares Exhibit to Multiple Class Plan (revised 9/1/14); (37)
    6(a) Copy of Class R Shares Exhibit to Multiple Class Plan (revised 12/1/15); (41)
    6(b) Copy of Class R6 Shares Exhibit to Multiple Class Plan (revised 2/8/16); (43)
    6(c) Copy of Class R6 Shares Exhibit to Multiple Class Plan (revised 4/7/16); (44)
    6(d) Copy of Class R6 Shares Exhibit to Multiple Class Plan (revised 10/1/16); (46)
    6(e) Copy of Class R6 Shares Exhibit to Multiple Class Plan (revised 9/1/17); (48)
    6(f) Copy of Class R6 Shares Exhibit to Multiple Class Plan (revised 10/1/2017); (49)
    6(g) Copy of Class R6 Shares Exhibit to the Multiple Class Plan (revised 9/1/2018); (51)
    6(h) Copy of Class R6 Shares Exhibit to the Multiple Class Plan (revised 12/1/2018); (53)
    6(i) Copy of Class R6 Shares Exhibit to the Multiple Class Plan (revised 6/1/2019); (54)
    7 Copy of Institutional Shares Exhibit to the Multiple Class Plan; (26)
    7(a) Copy of Institutional Shares Exhibit to the Multiple Class Plan (revised 4/7/2009); (27)
    7(b) Copy of Institutional Shares Exhibit to Multiple Class Plan (revised 1/31/11); (31)
    7(c) Copy of Institutional Shares Exhibit to Multiple Class Plan (revised 9/1/13); (35)
    7(d) Copy of Institutional Shares Exhibit to Multiple Class Plan (revised 9/1/14); (37)
    7(e) Copy of Institutional Shares Exhibit to Multiple Class Plan (revised 9/1/15); (39)
    7(f) Copy of Institutional/Wealth Shares Exhibit to Multiple Class Plan (revised 12/1/15); (41)
    7(g) Copy of Institutional Shares/Wealth Shares Exhibit to Multiple Class Plan (revised 10/1/16); (46)
    7(h) Copy of Institutional Shares/Wealth Shares Exhibit to Multiple Class Plan (revised 9/1/17); (48)
    7(i) Copy of Institutional Shares/Wealth Shares Exhibit to the Multiple Class Plan (revised 10/1/2017); (49)
    7(j) Copy of Institutional Shares/Wealth Shares Exhibit to the Multiple Class Plan (revised 11/1/2017); (50)
    7(k) Copy of Institutional Shares/Wealth Shares Exhibit to the Multiple Class Plan (revised 9/1/2018); (51)
    7(l) Copy of Institutional Shares/Wealth Shares Exhibit to the Multiple Class Plan (revised 12/1/2018) (53)
    7(m) Copy of Institutional Shares/Wealth Shares Exhibit to the Multiple Class Plan (revised 6/1/2019) (54)
    7(n) Copy of Institutional Shares/Wealth Shares Exhibit to the Multiple Class Plan (revised 12/1/2019) (+)
    8 Copy Institutional Service Shares to the Multiple Class Plan; (26)
    8(a) Copy of Institutional Service Shares Exhibit to the Multiple Class Plan (revised 4/7/2009); (27)
    8(b) Copy of Service Shares Exhibit to Multiple Class Plan (revised 9/30/11); (31)
    8(c) Copy of Service Shares Exhibit to Multiple Class Plan (revised 6/1/13); (35)
    8(d) Copy of Service Shares Exhibit to Multiple Class Plan (revised 9/1/14); (37)
    8(e) Copy of Service Shares Exhibit to Multiple Class Plan (revised 2/8/16); (43)
    8(f) Copy of Service Shares Exhibit to Multiple Class Plan (revised 6/1/17; (48)
    8(g) Copy of Service Shares Exhibit to Multiple Class Plan (revised 10/1/16); (46)
    8(h) Copy of Service Shares Exhibit to the Multiple Class Plan (revised 10/1/2017); (49)
    8(i) Copy of Service Shares Exhibit to the Multiple Class Plan (revised 9/1/2018); (51)
    8(j) Copy of Service Shares Exhibit to the Multiple Class Plan (revised 12/1/2018); (53)

    (o)
    1 Conformed copy of Power of Attorney of the Registrant; (8)
    2 Conformed copy of Power of Attorney of Trustees and Chief Investment Officer of the Registrant; (9)
    3 Conformed copy of the Power of Attorney of the Trustees and Treasurer of the Registrant; (19)
    4 Conformed copy of the Power of Attorney of the Trustee of the Registrant; (20)
    5 5 Conformed copy of the Power of Attorney of Trustee, Maureen E. Lally-Green, of the Registrant; (27)
    6 Conformed copy of the Power of Attorney of Trustee, Lori A. Hensler, of the Registrant; (34)
    7 Conformed copy of Power of Attorney of Trustee John T. Collins, dated October 28, 2013 (36)
    8 Conformed copy of Power of Attorney of Trustee P. Jerome Richey, dated October 28, 2013 (36)
    9 Conformed copy of Power of Attorney of Trustee G. Thomas Hough, dated August 11, 2015 (39)
    10 Conformed copy of Power of Attorney of Trustee John B. Fisher, dated May 11, 2016 (80)

    (p)
    1 The Registrant hereby incorporates the copy of the Code of Ethics for Access Persons from Item 23(p) of the Money Market Obligations Trust Registration Statement on Form N-1A filed with the Commission on February 26, 2004. (File Nos. 33-31602 and 811-5950).
    2 The Registrant hereby incorporates the copy of the Federated Investors, Inc. Code of Ethics for Access Persons, effective 1/1/2005, from Item 23(p) of the Money Market Obligations Trust Registration Statement on Form N-1A filed with the Commission on February 25, 2005. (File Nos. 33-31602 and 811-5950).
    3 Copy of the Code of Ethics for Access Persons effective 10/1/2008; (27)
    4

    Conformed copy of the Federated Investors, Inc. Code of Ethics
            for Access Persons Effective 09/01/2010

    (30)
    5 5

    Conformed copy of the Federated Investors, Inc. Code of Ethics
            for Access Persons Effective 12/06/2010

    (31)
    6 Conformed copy of the Federated Investors, Inc. Code of Ethics for Access Persons Effective 9/30/2012 (35)
    7 Conformed copy of the Federated Investors, Inc. Code of Ethics for Access Persons Effective 01/01/2016 (49)

    + Exhibit is being filed electronically with registration statement; indicate by footnote

    ALL RESPONSES ARE INCORPORATED BY REFERENCE TO A POST-EFFECTIVE
            AMENDMENT (PEA) OF THE REGISTRANT FILED ON FORM N-1A (FILE NOS. 33-54445 and 811-7193)

    2 Initial Registration Statement filed August 26, 1994.
    3 PEA No. 1 filed September 22, 1995.
    5 5 PEA No. 5 filed February 27, 1998.
    6 PEA No. 6 filed March 30, 1998.
    7 PEA No. 7 filed September 25, 1998.
    8 PEA No. 9 filed September 28, 1999.
    9 PEA No. 11 filed September 14, 2001.
    10 PEA No. 13 filed September 27, 2002.
    11 PEA No. 16 filed January 2, 2003.
    12 PEA No. 17 filed September 30, 2003.
    13 PEA No. 18 filed October 31, 2003.
    14 PEA No. 20 filed September 29, 2004.
    15 PEA No. 22 filed December 29, 2004.
    16 PEA No. 23 filed June 15, 2005.
    17 PEA No. 24 filed September 28, 2005.
    18 PEA No. 26 filed December 29, 2005.
    19 PEA No. 27 filed September 28, 2006.
    20 PEA No. 28 filed October 27, 2006.
    21 PEA No. 30 filed September 28, 2007.
    22 PEA No. 30 filed September 28, 2007.
    23 PEA No. 32 filed October 29, 2007.
    24 PEA No. 31 filed October 22, 2007.
    25 PEA No. 34 filed December 28, 2007.
    26 PEA No. 36 filed December 30, 2008
    27 PEA No. 37 filed September 28, 2009
    28 PEA No. 39 filed October 29, 2009
    29 PEA No. 41 filed December 30, 2009
    30 PEA No. 42 filed October 27, 2010
    31 PEA No. 44 filed September 37, 2011
    32 PEA No. 46 filed October 28, 2011
    33 PEA No. 50 filed September 25, 2012
    34 PEA No. 56 filed September 25, 2013
    35 PEA No. 58 filed October 25, 2013
    36 PEA No. 60 filed November 25, 2013
    37 PEA No. 64 filed September 25, 2014
    38 PEA No. 66 filed on October 27, 2014
    39 PEA No. 70 filed on September 25, 2015
    40 PEA No. 72 filed on October 27, 2015
    41 PEA No. 74 filed on December 28, 2015
    42 PEA No. 76 filed on January 29, 2016
    43 PEA No. 77 filed on March 28, 2016
    44 PEA No. 79 filed on April 13, 2016
    45 PEA No. 80 filed on June 23, 2016
    46 PEA No. 82 filed on October 26, 2016
    47 PEA No. 84 filed on December 27, 2016
    48 PEA No. 86 filed on September 26, 2017
    49 PEA No. 88 filed on October 25, 2017
    50 PEA No. 90 filed on December 27, 2017
    51 PEA No. 92 filed on September 25, 2018
    52 PEA No. 94 filed on October 25, 2018
    53 PEA No. 96 filed on December 28, 2018
    54 PEA No. 98 filed on July 26, 2019
    55 PEA No. 100 filed on November 25, 2019

    Item 29 Persons Controlled by or Under Common Control with the Fund:
    Ninguna

    Item 30.  Indemnification

    Indemnification is provided to Officers and Trustees of
            the Registrant pursuant to the Registrant's By-Laws, as amended. This includes indemnification against: (a) any liabilities or
            expenses incurred in connection with the defense or disposition of any action, suit or proceeding in which an Officer or Trustee
            may be or may have been involved; and (b) any liabilities and expenses incurred by an Officer or Trustee as a result of having
            provided personally identifiable information to a regulator or counterparty by or with whom the Registrant (or its series, as applicable)
            is regulated or engages in business to satisfy a legal or procedural requirement of such regulator or counterparty.

    The Investment Advisory Contract, and Sub-advisory Agreement
            as applicable, (collectively, “Advisory Contracts”) between the Registrant and the investment adviser, and sub-adviser
            as applicable, (collectively, “Advisers”) of its series, provide that, in the absence of willful misfeasance, bad faith,
            gross negligence, or reckless disregard of the obligations or duties under the Advisory Contracts on the part of the Advisers,
            Advisers shall not be liable to the Registrant or to any shareholder for any act or omission in the course of or connected in any
            way with rendering services or for any losses that may be sustained in the purchase, holding, or sale of any security.

    The Registrant’s distribution contract contains provisions
            limiting the liability, and providing for indemnification, of the Officers and Trustees under certain circumstances.

    Registrant's Trustees and Officers are covered by an Investment
            Trust Errors and Omissions Policy.

    Insofar as indemnification for liabilities arising under
            the Securities Act of 1933 may be permitted to Trustees, Officers, and controlling persons of the Registrant by the Registrant
            pursuant to the By-Laws, as amended, or otherwise, the Registrant is aware that in the opinion of the Securities and Exchange Commission,
            such indemnification is against public policy as expressed in the Act and, therefore, is unenforceable. In the event that a claim
            for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by Trustees),
            Officers, or controlling persons of the Registrant in connection with the successful defense of any act, suit, or proceeding) is
            asserted by such Trustees, Officers, or controlling persons in connection with the shares being registered, the Registrant will,
            unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
            the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final
            adjudication of such issues.

    Insofar as indemnification for liabilities may be permitted pursuant
            to Section 17 of the Investment Company Act of 1940 for Trustees, Officers, and controlling persons of the Registrant by the Registrant
            pursuant to the By-Laws, as amended, or otherwise, the Registrant is aware of the position of the Securities and Exchange Commission
            as set forth in Investment Company Act Release No. IC-11330. Therefore, the Registrant undertakes that in addition to complying
            with the applicable provisions of the By-Laws, as amended, or otherwise, in the absence of a final decision on the merits by a
            court or other body before which the proceeding was brought, that an indemnification payment will not be made unless in the absence
            of such a decision, a reasonable determination based upon factual review has been made (i) by a majority vote of a quorum of non-party
            Trustees who are not interested persons of the Registrant or (ii) by independent legal counsel in a written opinion that the indemnitee
            was not liable for an act of willful misfeasance, bad faith, gross negligence, or reckless disregard of duties. The Registrant
            further undertakes that advancement of expenses incurred in the defense of a proceeding (upon undertaking for repayment unless
            it is ultimately determined that indemnification is appropriate) against an Officer, Trustee or controlling person of the Registrant
            will not be made absent the fulfillment of at least one of the following conditions: (i) the indemnitee provides security for his
            undertaking; (ii) the Registrant is insured against losses arising by reason of any lawful advances; or (iii) a majority of a quorum
            of disinterested non-party Trustees or independent legal counsel in a written opinion makes a factual determination that there
            is reason to believe the indemnitee will be entitled to indemnification.

    Item 31  Business and Other Connections of Investment Adviser: Federated Investment Management Company
    For a description of the other business of the Investment Adviser, see the section entitled “Who Manages the Fund?” in Part A. The affiliations with the Registrant of two of the Trustees and two of the Officers of the Investment Adviser are included in Part B of this Registration Statement under "Who Manages and Provides Services to the Fund?"  The remaining Trustees of the Investment Adviser and, in parentheses, their principal occupations are:  Thomas R. Donahue, (Chief Financial Officer, Federated Investors, Inc.), 1001 Liberty Avenue, Pittsburgh, PA, 15222-3779, John B. Fisher, (Vice Chairman, Federated Investors, Inc.) 1001 Liberty Avenue, Pittsburgh, PA, 15222-3779 and James J. Gallagher, II, Partner, Morris James LLP, 500 Delaware Avenue, Suite 1500, Wilmington, DE  19801-1494.  The business address of each of the Officers of the Investment Adviser is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, Pennsylvania 15222-3779.  These individuals are also officers of a majority of the Investment Advisers to the investment companies in the Federated Fund Complex described in Part B of this Registration Statement.
    The Officers of the Investment Adviser are:
    Chairman: J. Christopher Donahue
    President/ Chief Executive Officer: John B. Fisher
    Executive Vice Presidents:

    Deborah A. Cunningham

    Robert J. Ostrowski

    Senior Vice Presidents:

    Todd Abraham

    J. Scott Albrecht

    Randall S. Bauer

    Jonathan C. Conley

    Mark E. Durbiano

    Donald T. Ellenberger

    Eamonn G. Folan

    Richard J. Gallo

    John T. Gentry

    Susan R. Hill

    William R. Jamison

    Jeffrey A. Kozemchak

    Anne H. Kruczek

    Marian R. Marinack

    Mary Jo Ochson

    Jeffrey A. Petro

    Ihab Salib

    Michael W. Sirianni, Jr.

    Steven J. Wagner

    Paige Wilhelm

    Vice Presidents:

    Christopher S. Bodamer

    G. Andrew Bonnewell

    Hanan Callas

    David B. Catalane, Jr.

    Leslie Ciferno

    Jerome Conner

    Lee R. Cunningham, II

    Gregory Czamara, V

    B. Anthony Delserone, Jr.

    Joseph A. Delvecchio

    Jason DeVito

    Bryan Dingle

    William Ehling

    Ann Ferentino

    Kevin M. Fitzpatrick

    Timothy P. Gannon

    Kathryn P. Glass

    James L. Grant

    Patricia L. Heagy

    Nathan H. Kehm

    John C. Kerber

    J. Andrew Kirschler

    Allen J. Knizner

    Tracey Lusk

    Karen Manna

    Daniel James Mastalski

    Robert J. Matthews

    Christopher McGinley

    Keith E. Michaud

    Karl Mocharko

    Joseph M. Natoli

    Gene Neavin

    Bob Nolte

    Liam O’Connell

    Mary Kay Pavuk

    John Polinski

    Rae Ann Rice

    Brian Ruffner

    Thomas C. Scherr

    John Sidawi

    Kyle Stewart

    Patrick J. Strollo, III

    Mary Ellen Tesla

    James Damen Thompson

    Timothy G. Trebilcock

    Nicholas S. Tripodes

    Anthony A. Venturino

    Mark Weiss

    George B. Wright

    Christopher Wu

    Assistant Vice Presidents:

    John Badeer

    Ian Paul Bangor

    Patrick Benacci

    Nicholas Cecchini

    James Chelmu

    Joseph Engel

    Brandon Ray Hochstetler

    Jeff J. Ignelzi

    Nick Navari

    Bradley Payne

    Braden Rotberg

    John W. Scullion

    Steven J. Slanika

    Peter Snook

    Randal Stuckwish

    Michael S. Wilson

    Secretary: G. Andrew Bonnewell
    Assistant Secretaries:

    Edward C. Bartley

    George F. Magera

    Treasurer: Thomas R. Donahue
    Assistant Treasurers: Jeremy D. Boughton
    Richard A. Novak
    Chief Compliance Officer: Stephen Van Meter

    Item 32  Principal Underwriters:
    (a) Federated Securities Corp., the Distributor for shares of the Registrant, acts as principal underwriter for the following investment companies, including the Registrant:
    Federated Adjustable Rate Securities Fund
    Federated Adviser Series
    Federated Core Trust
    Federated Core Trust III
    Federated Equity Funds
    Federated Equity Income Fund, Inc.
    Federated Fixed Income Securities, Inc.
    Federated Global Allocation Fund
    Federated Government Income Securities, Inc.
    Federated Government Income Trust
    Federated High Income Bond Fund, Inc.
    Federated High Yield Trust
    Federated Income Securities Trust
    Federated Index Trust
    Federated Institutional Trust
    Federated Insurance Series
    Federated International Series, Inc.
    Federated Investment Series Funds, Inc.
    Federated Managed Pool Series
    Federated MDT Series
    Federated Municipal Bond Fund, Inc.
    Federated Municipal Securities Income Trust
    Federated Premier Municipal Income Fund
    Federated Project and Trade Finance Tender Fund
    Federated Short-Intermediate Duration Municipal Trust
    Federated Total Return Government Bond Fund
    Federated Total Return Series, Inc.
    Federated U.S. Government Securities Fund: 1-3 Years
    Federated U.S. Government Securities Fund: 2-5 Years
    Federated World Investment Series, Inc.
    Intermediate Municipal Trust
    Money Market Obligations Trust

    (b)

    (1)

    Positions and Offices with Distributor

    (2)

    Nombre

    (3)

    Positions and Offices With Registrant

    Executive Vice President, Assistant Secretary and Director: Thomas R. Donahue
    President and Director: Paul Uhlman
    Vice President and Director: Peter J. Germain
    Director: Frank C. Senchak

    (1)

    Positions and Offices with Distributor

    (2)

    Nombre

    (3)

    Positions and Offices With Registrant

    Executive Vice Presidents:

    Michael Bappert

    Peter W. Eisenbrandt

    Solon A. Person, IV

    Senior Vice Presidents:

    Irving Anderson

    Daniel G. Berry

    Jack Bohnet

    Edwin J. Brooks, III

    Bryan Burke

    Scott J. Charlton

    Steven R. Cohen

    James S. Conley

    Stephen R. Cronin

    Charles L. Davis, Jr.

    Michael T. Dieschborg

    Michael T. DiMarsico

    Jack C. Ebenreiter

    James Getz, Jr.

    Scott A. Gunderson

    Dayna C. Haferkamp

    Vincent L. Harper, Jr.

    Bruce E. Hastings

    Donald Jacobson

    Jeffrey S. Jones

    Scott D. Kavanagh

    Harry J. Kennedy

    Michael Koenig

    Edwin C. Koontz

    Anne H. Kruczek

    Jane E. Lambesis

    Jerry Landrum

    Hans W. Lange, Jr.

    Michael Liss

    Diane Marzula

    Amy Michaliszyn

    Richard C. Mihm

    Vincent T. Morrow

    Alec H. Neilly

    Keith Nixon

    James E. Ostrowski

    Stephen Otto

    Richard P. Paulson

    Richard A. Recker

    Diane M. Robinson

    Brian S. Ronayne

    Timothy A. Rosewicz

    Eduardo G. Sanchez

    Tom Schinabeck

    Edward L. Smith

    John Staley

    William C. Tustin

    Michael N. Vahl

    G. Walter Whalen

    Lewis C. Williams

    Michael Wolff

    Daniel R. Wroble

    Erik Zettlemayer

    Paul Zuber

    Vice Presidents:

    Frank Amato

    Catherine M. Applegate

    Kenneth C. Baber

    Raisa E. Barkaloff

    Robert W. Bauman

    Marc Benacci

    Christopher D. Berg

    Bill Boarts

    Matthew A. Boyle

    Edward R. Bozek

    Thomas R. Brown

    Mark Carroll

    Dan Casey

    Stephen J. Costlow

    Mary Ellen Coyne

    Kevin J. Crenny

    David G. Dankmyer

    Christopher T. Davis

    Donald Edwards

    Mark A. Flisek

    Stephen Francis

    David D. Gregoire

    Raymond J. Hanley

    George M. Hnaras

    Scott A. Holick

    Robert Hurbanek

    Ryan W. Jones

    Todd Jones

    Patrick Kelly

    Nicholas R. Kemerer

    Robert H. Kern

    Shawn E. Knutson

    Crystal C. Kwok

    David M. Larrick

    John P. Liekar

    Jonathan Lipinski

    Paul J. Magan

    Margaret M. Magrish

    Meghan McAndrew

    Martin J. McCaffrey

    Samuel McGowan

    Daniel McGrath

    Brian McInis

    John C. Mosko

    Mark J. Murphy

    Catherine M. Nied

    Ted Noethling

    John A. O’Neill

    Mark Patsy

    Marcus Persichetti

    Max E. Recker

    Emory Redd

    Matt Ryan

    John Shrewsbury

    Peter Siconolfi

    Neal Siena

    Justin Slomkowski

    Bradley Smith

    John R. Stanley

    Mark Strubel

    Jonathan Sullivan

    David Wasik

    Theodore Williams

    Brian R. Willer

    Littell L. Wilson

    James J. Wojciak

    Assistant Vice Presidents:

    Debbie Adams-Marshall

    Zachary J. Bono

    Edward R. Costello

    Chris Jackson

    Kristen C. Kiesling

    Anthony W. Lennon

    Stephen R. Massey

    Carol McEvoy McCool

    John K. Murray

    Melissa R. Ryan

    Carol Anne Sheppard

    Scott A. Vallina

    Laura Vickerman

    Secretary: Kary A. Moore
    Assistant Secretaries: Edward C. Bartley
    Thomas R. Donahue
    George F. Magera
    Treasurer: Richard A. Novak
    Assistant Treasurer: Jeremy D. Boughton
    Chief Compliance Officer: Stephen Van Meter

    Item 33  Location of Accounts and Records:
    All accounts and records required to be maintained by Section 31(a) of the Investment Company Act of 1940 and Rules 31a-1 through 31a-3 promulgated thereunder are maintained at one of the following locations:

    Federated Institutional Trust (“Registrant”)

    Federated Investors Funds
    4000 Ericsson Drive

    Warrendale, PA 15086-7561

    (Notices should be sent to the Agent for Service at the address listed on the facing page of this filing.)

    State Street Bank and Trust Company ("Custodian, Transfer Agent and Dividend Disbursing Agent”)

    CORREOS. Box 219318

    Kansas City, MO 64121-9318

    Federated Administrative Services

    ("Administrator")

    Federated Investors Tower

    1001 Liberty Avenue

    Pittsburgh, PA 15222-3779

    Federated Investment Management Company ("Adviser")

    Federated Investors Tower

    1001 Liberty Avenue

    Pittsburgh, PA 15222-3779

    Item 34 Management Services: Not applicable.

    Item 35  Undertakings:
    Registrant hereby undertakes to comply with the provisions of Section 16(c) of the 1940 Act with respect to the removal of Trustees and the calling of special shareholder meetings by shareholders.

    SIGNATURES

    Pursuant to the requirements of the Securities Act of 1933,
            and the Investment Company Act of 1940, the Registrant, FEDERATED INSTITUTIONAL TRUST, certifies
            that it meets all of the requirements for effectiveness of this Amendment to its Registration Statement pursuant to Rule 485(b)
            under the Securities Act of 1933 and
    has duly caused this Amendment to its Registration Statement to be signed on its
            behalf by the undersigned, duly authorized, in the City of Pittsburgh and Commonwealth of Pennsylvania, on the 27th
    day of December, 2019.

    FEDERATED INSTITUTIONAL TRUST

    BY: /s/ George F. Magera

    George F. Magera, Assistant Secretary

    Pursuant to the requirements of the Securities Act of 1933, this Amendment to its Registration Statement has been signed below by the following person in the capacity and on the date indicated:

    NAME TITLE DATE

    BY:
    /s/ George F. Magera

    George F. Magera, Assistant Secretary

    Attorney In Fact For the Persons Listed Below 27 de diciembre de 2019

    J. Christopher Donahue*

    President and Trustee (Principal Executive Officer)
    John B. Fisher* Trustee
    Lori A. Hensler* Treasurer (Principal Financial Officer/Principal Accounting Officer)
    John T. Collins* Trustee
    G. Thomas Hough* Trustee
    Maureen E. Lally-Green* Trustee
    Charles F. Mansfield, Jr.* Trustee
    Thomas O’Neill* Trustee
    P. Jerome Richey* Trustee
    John S. Walsh* Trustee
    *By Power of Attorney

    Exhibit 28 (h)(41) under Form N-1A

    Exhibit 10 under Item 601/Reg. S-K

    SCHEDULE 1

    TO SECOND AMENDED AND RESTATED SERVICES AGREEMENT

    (revised 12/1/2019)

    The following lists the Funds and Shares subject to the Second Amended
    and Restated Services Agreement (“Agreement”) which have the ability to charge the maximum 0.25% Service Fee payable
    by the Funds pursuant to the Agreement.

    FEDERATED ADJUSTABLE RATE SECURITIES FUND Institutional Shares
    Service Shares
    FEDERATED ADVISER SERIES
    Federated Emerging Markets Equity Fund Class A Shares
    Class C Shares
    Institutional Shares
    Federated Hermes Absolute Credit Fund Class A Shares
    Class C Shares
    Institutional Shares
    Federated Hermes Global Equity Fund Class A Shares
    Class C Shares
    Institutional Shares
    Federated Hermes Global Small Cap Fund Class A Shares
    Class C Shares
    Institutional Shares
    Federated Hermes International Equity Fund Class A Shares
    Class C Shares
    Institutional Shares
    Federated Hermes SDG Engagement Equity Fund Class A Shares
    Class C Shares
    Institutional Shares
    Federated Hermes SDG Engagement High Yield Credit Fund Class A Shares
    Class C Shares
    Institutional Shares
    Federated Hermes Unconstrained Credit Fund Class A Shares
    Class C Shares
    Institutional Shares
    Federated International Equity Fund Class A Shares
    Class C Shares
    Institutional Shares
    Federated International Growth Fund Class A Shares
    Class C Shares
    Institutional Shares
    Federated MDT Large Cap Value Fund Service Shares
    Class A Shares
    Class C Shares
    Class T Shares
    FEDERATED EQUITY FUNDS
    Federated Clover Small Value Fund Class A Shares
    Class C Shares
    Class T Shares
    Federated Global Strategic Value Dividend Fund Class A Shares
    Class C Shares
    Federated International Strategic Value Dividend Fund Class A Shares
    Class C Shares
    Class T Shares
    Federated Kaufmann Fund Class A Shares
    Class C Shares
    Class R Shares
    Class T Shares
    Federated Kaufmann Large Cap Fund Class A Shares
    Class C Shares
    Class T Shares
    Federated Kaufmann Small Cap Fund Class A Shares
    Class C Shares
    Class T Shares
    Federated MDT Mid Cap Growth Fund Class A Shares
    Class C Shares
    Class T Shares
    Federated Prudent Bear Fund Class A Shares
    Class C Shares
    Class T Shares
    Federated Strategic Value Dividend Fund Class A Shares
    Class C Shares
    Class T Shares
    FEDERATED EQUITY INCOME FUND, INC. Class A Shares
    Class C Shares
    Class F Shares
    Class T Shares
    FEDERATED FIXED INCOME SECURITIES, INC.
    Federated Municipal Ultrashort Fund Class A Shares
    Federated Strategic Income Fund Class A Shares
    Class C Shares
    Class F Shares
    Class T Shares
    FEDERATED GLOBAL ALLOCATION FUND Class A Shares
    Class C Shares
    Class T Shares
    FEDERATED GOVERNMENT INCOME SECURITIES, INC. Class A Shares
    Class C Shares
    Class F Shares
    Class T Shares
    FEDERATED GOVERNMENT INCOME TRUST
    Federated Government Income Trust Institutional Shares
    Service Shares
    FEDERATED HIGH INCOME BOND FUND, INC. Class A Shares
    Class C Shares
    Class T Shares
    FEDERATED HIGH YIELD TRUST
    Federated High Yield Trust Service Shares
    Class A Shares
    Class C Shares
    Class T Shares
    Federated Equity Advantage Fund

    Class A Shares

    FEDERATED INCOME SECURITIES TRUST
    Federated Capital Income Fund Class A Shares
    Class C Shares
    Class F Shares
    Class T Shares
    Federated Floating Rate Strategic Income Fund Class A Shares
    Class C Shares
    Federated Fund for U.S. Government Securities Class A Shares
    Class C Shares
    Class T Shares
    Federated Intermediate Corporate Bond Fund Institutional Shares
    Service Shares
    Federated Muni and Stock Advantage Fund Class A Shares
    Class C Shares
    Class F Shares
    Class T Shares
    Federated Real Return Bond Fund Class A Shares
    Class C Shares
    Institutional Shares
    Federated Short-Term Income Fund Class A Shares
    Service Shares
    FEDERATED INDEX TRUST
    Federated Max-Cap Index Fund Class C Shares
    Institutional Shares
    Service Shares
    Federated Mid-Cap Index Fund Service Shares
    FEDERATED INSTITUTIONAL TRUST
    Federated Government Ultrashort Duration Fund Class A Shares
    Service Shares
    Federated Institutional High Yield Bond Fund
    Federated Short-Intermediate Total Return Bond Fund Class A Shares
    Service Shares
    FEDERATED INSURANCE SERIES
    Federated Fund for US Government Securities II
    Federated High Income Bond Fund II Primary Shares
    Service Shares
    Federated Kaufmann Fund II Primary Shares
    Service Shares
    Federated Managed Volatility Fund II
    Federated Government Money Fund II Primary Shares
    Service Shares
    FEDERATED INTERNATIONAL SERIES, INC.
    Federated Global Total Return Bond Fund Class A Shares
    Class C Shares
    FEDERATED INVESTMENT SERIES FUNDS, INC.
    Federated Bond Fund Class A Shares
    Class C Shares
    Class F Shares
    Class T Shares
    FEDERATED MDT SERIES
    Federated MDT All Cap Core Fund Class A Shares
    Class C Shares
    Class T Shares
    Federated MDT Large Cap Growth Fund Class A Shares
    Class C Shares
    Class T Shares
    Federated MDT Small Cap Core Fund Class A Shares
    Class C Shares
    Class T Shares
    Federated MDT Small Cap Growth Fund Class A Shares
    Class C Shares
    Class T Shares
    Federated MDT Balanced Fund Class A Shares
    Class C Shares
    Class T Shares
    FEDERATED MUNICIPAL BOND FUND, INC. Class A Shares
    Class C Shares
    Class F Shares
    Class T Shares
    Institutional Shares
    FEDERATED MUNICIPAL SECURITIES INCOME TRUST
    Federated Michigan Intermediate Municipal Trust Class A Shares
    Federated Municipal High Yield Advantage Fund Class A Shares
    Class C Shares
    Class F Shares
    Class T Shares
    Federated Ohio Municipal Income Fund Class A Shares
    Class F Shares
    Federated Pennsylvania Municipal Income Fund Class A Shares
    Class A Shares
    Class T Shares

    FEDERATED SHORT-INTERMEDIATE DURATION MUNICIPAL TRUST Class A Shares
    Institutional Shares
    Service Shares
    FEDERATED TOTAL RETURN GOVERNMENT BOND FUND Service Shares

    FEDERATED TOTAL RETURN SERIES, INC.
    Federated Select Total Return Bond Fund (formerly Federated Mortgage Fund) Institutional Shares
    Service Shares
    Federated Total Return Bond Fund Class A Shares
    Class C Shares
    Service Shares
    Class T Shares
    Federated Ultrashort Bond Fund Class A Shares
    Institutional Shares
    Service Shares
    FEDERATED U.S. GOVERNMENT SECURITIES FUND:  1-3 YEARS Institutional Shares
    Service Shares
    FEDERATED U.S. GOVERNMENT SECURITIES FUND:  2-5 YEARS Institutional Shares
    Service Shares
    FEDERATED WORLD INVESTMENT SERIES, INC.
    Federated Emerging Market Debt Fund Class A Shares
    Class C Shares
    Federated International Leaders Fund Class A Shares
    Class C Shares
    Class T Shares
    Federated International Small-Mid Company Fund Class A Shares
    Class C Shares
    Class T Shares
    INTERMEDIATE MUNICIPAL TRUST
    Federated Intermediate Municipal Trust Institutional Shares
    MONEY MARKET OBLIGATIONS TRUST
    Federated California Municipal Cash Trust Capital Shares
    Cash II Shares
    Cash Series Shares
    Wealth Shares
    Service Shares
    Federated Capital Reserves Fund
    Federated Georgia Municipal Cash Trust
    Federated Government Obligations Fund Advisor Shares
    Capital Shares
    Cash II Shares
    Cash Series Shares
    Institutional Shares
    Select Shares
    Service Shares
    Trust Shares
    Federated Government Obligations Tax-Managed Fund Automated Shares
    Institutional Shares
    Service Shares
    Federated Government Reserves Fund Class A Shares
    Class C Shares
    Class F Shares