Fund Description

The fund was incepted in November 1992 and is managed by Federated Investment Management Company. The fund's investment objective is to provide investment results generally corresponding to the aggregate price and dividend performance of publicly-traded common stocks that comprise the mid-level stock capitalization sector of the United States equity market. In pursuing its investment objective, the fund normally invests its assets primarily in common stocks included in the S&P 400. The fund seeks to reduce the difference in the fund's portfolio performance relative to the S&P 400 ('tracking error') by investing in a portfolio that seeks to replicate, as closely as possible, the composition of the S&P 400. The fund attempts to achieve a 0.95 or better correlation between the performance of the fund and, that of the S&P 400. The fund may also employ the following strategies to attempt to further reduce tracking error one buying and selling securities after announced changes in the S&P 400 but before the effective date of the changes two purchasing S&P 400 futures contracts in amounts approximating the cash held in the fund's portfolio and three lending the fund's securities to broker dealers or other institutions to earn income for the fund. The fund offers dividends quarterly and capital gains annually.