0001318148-13-000406.txt : 20130218 0001318148-13-000406.hdr.sgml : 20130218 20130215125328 ACCESSION NUMBER: 0001318148-13-000406 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 7 FILED AS OF DATE: 20130215 DATE AS OF CHANGE: 20130215 EFFECTIVENESS DATE: 20130215 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FEDERATED INCOME SECURITIES TRUST CENTRAL INDEX KEY: 0000789281 IRS NUMBER: 251412886 STATE OF INCORPORATION: MA FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-04577 FILM NUMBER: 13618475 BUSINESS ADDRESS: STREET 1: 4000 ERICSSON DRIVE CITY: WARRENDALE STATE: PA ZIP: 15086-7561 BUSINESS PHONE: 8003417400 MAIL ADDRESS: STREET 1: 4000 ERICSSON DRIVE CITY: WARRENDALE STATE: PA ZIP: 15086-7561 FORMER COMPANY: FORMER CONFORMED NAME: FEDERATED FLOATING RATE TRUST DATE OF NAME CHANGE: 19920205 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FEDERATED INCOME SECURITIES TRUST CENTRAL INDEX KEY: 0000789281 IRS NUMBER: 251412886 STATE OF INCORPORATION: MA FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 033-03164 FILM NUMBER: 13618476 BUSINESS ADDRESS: STREET 1: 4000 ERICSSON DRIVE CITY: WARRENDALE STATE: PA ZIP: 15086-7561 BUSINESS PHONE: 8003417400 MAIL ADDRESS: STREET 1: 4000 ERICSSON DRIVE CITY: WARRENDALE STATE: PA ZIP: 15086-7561 FORMER COMPANY: FORMER CONFORMED NAME: FEDERATED FLOATING RATE TRUST DATE OF NAME CHANGE: 19920205 0000789281 S000009073 Federated Capital Income Fund C000024648 Class A Shares CAPAX C000024649 Class B Shares CAPBX C000024650 Class C Shares CAPCX C000024651 Class F Shares CAPFX C000114947 Institutional Shares 0000789281 S000030499 Federated Unconstrained Bond Fund C000093813 Institutional Shares FUBDX C000104482 Class A Shares FUNAX 485BPOS 1 form.htm

1933 Act File No. 33-3164
1940 Act File No. 811-4577

 

Form N-1A

 

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933  
       
  Pre-Effective Amendment No.    
       
  Post-Effective Amendment No.   122
 
and/or
   
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940  
       
  Amendment No.   115
         

 

 

 

FEDERATED INCOME SECURITIES TRUST

(Exact Name of Registrant as Specified in Charter)

 

Federated Investors Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

(Address of Principal Executive Offices)

 

(412) 288-1900

(Registrant’s Telephone Number, including Area Code)

 

John W. McGonigle, Esquire

Federated Investors Tower

Pittsburgh, Pennsylvania 15222-3779

(Name and Address of Agent for Service)

 

 

It is proposed that this filing will become effective (check appropriate box):
   
X immediately upon filing pursuant to paragraph (b)
  on   pursuant to paragraph (b)
  60 days after filing pursuant to paragraph (a)(1)
  on   pursuant to paragraph (a)(1)
  75 days after filing pursuant to paragraph (a)(2)
  on   pursuant to paragraph (a)(2) of Rule 485
 
If appropriate, check the following box:
   
  This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, and the Investment Company Act of 1940, the Registrant, Federated Income Securities 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 15th day of February 2013.

FEDERATED INCOME SECURITIES TRUST

BY: /s/ Alicia G. Powell

Alicia G. Powell, 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/ Alicia G. Powell

Alicia G. Powell, Assistant Secretary

 Attorney In Fact For the Persons Listed Below February 15, 2013
John F. Donahue * Trustee  
J. Christopher Donahue * President and Trustee (Principal Executive Officer)  
Richard A. Novak* Treasurer (Principal Financial Officer)  
John F. Cunningham* Trustee  
Maureen Lally-Green* Trustee  
Peter E. Madden* Trustee  
Charles F. Mansfield, Jr.* Trustee  
Thomas O’Neill* Trustee  
John S. Walsh* Trustee  
*By Power of Attorney    

 

 
 

 

Federated Capital Income Fund

Federated Unconstrained Bond Fund

Portfolios of Federated Income Securities Trust

Post-Effective Amendment No. 122

This Post-Effective Amendment is filed for the sole purpose of submitting the XBRL Interactive Data File exhibits for the Risk/Return Summary of the above-named Fund filed as part of Post-Effective Amendment No. 121 on January 25, 2013. The exhibits filed herewith do not constitute the complete publicly filed disclosure for the Fund, and should be used in conjunction with the complete prospectus for the Fund.

 

Exhibit List for Interactive Data File Submissions.

 

 

EX-101.INS INSTANCE
EX-101.SCH SCHEMA
EX-101.CAL CALCULATION LINKBASE
EX-101.DEF DEFINITION LINKBASE
EX-101.LAB LABEL LINKBASE
EX-101.PRE PRESENTATION LINKBASE

 

 

 EX-101.INS 2 fist5-20130125.xml XBRL INSTANCE FILE 0000789281 fist5:S000009073Member 2012-02-01 2013-01-31 0000789281 2012-02-01 2013-01-31 0000789281 fist5:S000030499Member 2012-02-01 2013-01-31 0000789281 fist5:S000030499Member fist5:C000104482Member 2012-02-01 2013-01-31 0000789281 fist5:S000030499Member fist5:C000093813Member 2012-02-01 2013-01-31 0000789281 fist5:S000009073Member fist5:C000024648Member 2012-02-01 2013-01-31 0000789281 fist5:S000009073Member fist5:C000024651Member 2012-02-01 2013-01-31 0000789281 fist5:S000009073Member fist5:C000024649Member 2012-02-01 2013-01-31 0000789281 fist5:S000009073Member fist5:C000024650Member 2012-02-01 2013-01-31 0000789281 fist5:S000009073Member fist5:C000114947Member 2012-02-01 2013-01-31 0000789281 fist5:S000030499Member rr:AfterTaxesOnDistributionsMember fist5:C000093813Member 2012-02-01 2013-01-31 0000789281 fist5:S000030499Member fist5:BankOfAmericaMerrillLynchThreeMonthUsTreasuryBillIndexMember 2012-02-01 2013-01-31 0000789281 fist5:S000030499Member rr:AfterTaxesOnDistributionsAndSalesMember fist5:C000093813Member 2012-02-01 2013-01-31 0000789281 fist5:S000009073Member rr:AfterTaxesOnDistributionsMember fist5:C000024648Member 2012-02-01 2013-01-31 0000789281 fist5:S000009073Member rr:AfterTaxesOnDistributionsAndSalesMember fist5:C000024648Member 2012-02-01 2013-01-31 0000789281 fist5:S000009073Member fist5:StandardAndPoorsFiveHundredIndexMember 2012-02-01 2013-01-31 0000789281 fist5:S000009073Member fist5:BlendedIndexMember 2012-02-01 2013-01-31 0000789281 fist5:S000009073Member fist5:LipperMixedAssetTargetAllocationMedianClassificationMember 2012-02-01 2013-01-31 pure iso4217:USD <div style="display:none">~ http://www.FederatedInvestors.com/role/ScheduleShareholderFeesFederatedCapitalIncomeFund column period compact * ~</div> <div style="display:none">~ http://www.FederatedInvestors.com/role/ScheduleAnnualFundOperatingExpensesFederatedCapitalIncomeFund column period compact * ~</div> <div style="display:none">~ http://www.FederatedInvestors.com/role/ScheduleExpenseExampleTransposedFederatedCapitalIncomeFund column period compact * ~</div> <div style="display:none">~ http://www.FederatedInvestors.com/role/ScheduleAnnualTotalReturnsFederatedCapitalIncomeFundBarChart column period compact * ~</div> <div style="display:none">~ http://www.FederatedInvestors.com/role/ScheduleAverageAnnualTotalReturnsTransposedFederatedCapitalIncomeFund column period compact * ~</div> 485BPOS FEDERATED INCOME SECURITIES TRUST 2012-11-30 0000789281 false 2013-01-25 2013-01-28 <div style="display:none">~ http://www.FederatedInvestors.com/role/ScheduleShareholderFeesFederatedUnconstrainedBondFund column period compact * ~</div> <div style="display:none">~ http://www.FederatedInvestors.com/role/ScheduleAnnualFundOperatingExpensesFederatedUnconstrainedBondFund column period compact * ~</div> <div style="display:none">~ http://www.FederatedInvestors.com/role/ScheduleExpenseExampleTransposedFederatedUnconstrainedBondFund column period compact * ~</div> <div style="display:none">~ http://www.FederatedInvestors.com/role/ScheduleAnnualTotalReturnsFederatedUnconstrainedBondFundBarChart column period compact * ~</div> <div style="display:none">~ http://www.FederatedInvestors.com/role/ScheduleAverageAnnualTotalReturnsTransposedFederatedUnconstrainedBondFund column period compact * ~</div> 2013-01-31 <b>Federated Unconstrained Bond Fund (the "Fund")</b> <b>RISK/RETURN SUMMARY: INVESTMENT OBJECTIVE </b> The Fund's investment objective is to provide high total returns. Shareholder Fees (fees paid directly from your investment) 0.045 0 0 0 0 0 0 0 0 0 <b>Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)</b> <b>Federated Capital Income Fund (the "Fund")</b> <b>RISK/RETURN SUMMARY: INVESTMENT OBJECTIVE</b> The Fund's investment objectives are current income and long-term growth of income. Capital appreciation is a secondary objective. <b>RISK/RETURN SUMMARY: FEES AND EXPENSES</b> 0.007 0.007 0.0005 0 0.0065 This table describes the fees and expenses that you may pay if you buy and hold Class A Shares (A), Class B Shares (B), Class C Shares (C), Class F Shares (F) and Institutional Shares (IS) of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000, or $1,000,000, in certain classes (e.g., A class and F class, respectively) of Federated funds. More information about these and other discounts is available from your financial professional and in the "What Do Shares Cost?" section of the Prospectus on page 16. 0.0041 0.0003 0.0003 0.0143 0.0114 -0.0022 -0.0018 0.0121 0.0096 <b>Example</b> This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.<br/><br/>The Example assumes that you invest $10,000 for the time periods indicated and then redeem all of your Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that operating expenses are as shown in the table above and remain the same. Although your actual costs and returns may be higher or lower, based on these assumptions your costs would be: 589 116 882 362 1196 628 2086 1386 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000, or $1,000,000, in certain classes (e.g., A class and F class, respectively) of Federated funds. 50000 1000000 <b>Portfolio Turnover</b> Shareholder Fees (fees paid directly from your investment) The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund Shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 113% of the average value of its portfolio. <b>RISK/RETURN SUMMARY: INVESTMENTS, RISKS and PERFORMANCE</b><br/><br/><b>What are the Fund's Main Investment Strategies?</b> The Fund invests primarily across the domestic and international fixed-income markets represented by the following sectors: domestic investment-grade (including U.S. Treasury, government securities, mortgage backed and corporate debt investments); domestic noninvestment-grade corporate bonds (also known as "high yield" or "junk" bonds or, in the case of loans, "leveraged loans"); and international, without regard to credit quality, including trade finance loans and corporate and government securities issued and/or traded in emerging and/or developed markets. The Adviser will determine whether a security is investment grade based upon the credit ratings given by one or more nationally recognized statistical rating organizations (NRSROs). If a security has not received a rating, the Fund must rely entirely upon the Adviser's credit assessment that the security is comparable to investment grade. Within each sector, the Fund may also invest in inflation-indexed bonds. The Fund does not limit the amount that it may invest in any one of these sectors. The Fund does not have a specified minimum credit quality rating and may invest up to 100% of its total assets in investments rated below investment grade, including high yield bonds and emerging market debt. The Adviser will have the flexibility to manage the average duration to within a range of negative five (-5) to ten (+10) years. The Fund does not have any further specified duration target within that range and the duration of the Fund's portfolio is not otherwise limited as a matter of investment policy. From time to time, the Fund may receive equity securities in connection with the restructuring of defaulted corporate bonds, in general, and high yield bonds, in particular. The Fund may pursue investment opportunities that benefit from increases, as well as decreases, in the value of an investment.<br/><br/>Certain of the government securities in which the Fund invests are not backed by the full faith and credit of the U.S. government, such as those issued by the Federal Home Loan Mortgage Corporation ("Freddie Mac"), the Federal National Mortgage Association ("Fannie Mae"), and the Federal Home Loan Bank System. These entities are, however, supported through federal subsidies, loans or other benefits. The Fund may also invest in government securities that are supported by the full faith and credit of the U.S. government, such as those issued by the Government National Mortgage Association ("Ginnie Mae"). Finally, the Fund may invest in a few government securities that have no explicit financial support, but which are regarded as having implied support because the federal government sponsors their activities.<br/><br/>The Fund may also invest in derivative contracts or hybrid instruments (such as, for example, futures contracts, option contracts and swap contracts), to implement its investment strategies as more fully described herein.<br/><br/>The Fund may also 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 loan instruments, including trade finance loan instruments, and mortgage-backed, high yield, inflation-protected and emerging markets debt securities 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 loan instruments through these other investment companies 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.<br/><br/>Because the Fund refers to fixed-income investments in its name, it will notify shareholders at least 60 days in advance of any change in its investment policies that would enable the Fund to normally invest less than 80% of its assets in fixed-income investments. <b>What are the Main Risks of Investing in the Fund?</b> 0.055 0 0 0.01 0 0 0.055 0.01 0.01 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 <b>Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)</b> All mutual funds take investment risks. Therefore, it is possible to lose money by investing in the Fund. The primary factors that may reduce the Fund's returns include: <ul type = "square"><li><b>Interest Rate Risk.</b> Prices of fixed-income securities rise and fall in response to changes in the interest rate paid by similar securities. Generally, when interest rates rise, prices of fixed-income securities fall. In the event that the Fund has a negative average portfolio duration, the value of the Fund may decline in a declining interest rate environment.</li></ul><ul type = "square"><li><b>Issuer Credit Risk.</b> 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.</li></ul><ul type = "square"><li><b>Counterparty Credit Risk.</b> Credit 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 the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategy. </li></ul><ul type = "square"><li><b>Agent Insolvency Risk. </b>In a syndicated loan, the agent bank is the bank in the syndicate 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, pursuing certain available contractual remedies, etc.). </li></ul><ul type = "square"><li><b>Call Risk. </b>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.</li></ul><ul type = "square"><li><b>Prepayment Risk. </b>When homeowners prepay their mortgages in response to lower interest rates, the Fund will be required to reinvest the proceeds at the lower interest rates available. Also, when interest rates fall, the price of mortgage-backed securities may not rise to as great an extent as that of other fixed-income securities. </li></ul><ul type = "square"><li><b>Loan Prepayment Risk. </b>During 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 instruments. </li></ul><ul type = "square"><li><b>Loan Liquidity Risk. </b>Loans 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. </li></ul><ul type = "square"><li><b>Liquidity Risk. </b>The fixed-income securities in which the Fund invests may be less readily marketable and may be subject to greater fluctuation in price than other securities. 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 could incur losses.</li></ul><ul type = "square"><li><b>Risk of Investing in Loans. </b>In 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. Loans generally are subject to legal or contractual restrictions on resale. </li></ul><ul type = "square"><li><b>Risk Associated with Noninvestment-Grade Securities. </b>The Fund may invest a portion of its assets in securities rated below investment grade, also known as "junk bonds" or "leveraged loans," which may be subject to greater interest rate, credit and liquidity risks than investment-grade securities. </li></ul><ul type = "square"><li><b>Risk Related to the Economy. </b>Lower-grade bond returns are sensitive to changes in the economy. The value of the Fund's portfolio may decline in tandem with a drop in the overall value of the stock market based on negative developments in the U.S. and global economies. </li></ul><ul type = "square"><li><b>Risk of Foreign Investing. </b> Because the Fund invests in securities issued by foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than would otherwise be the case.</li></ul><ul type = "square"><li><b>Currency Risk. </b> Exchange rates for currencies fluctuate daily. Accordingly, the Fund may experience increased volatility with respect to the value of its Shares and its returns as a result of its exposure to foreign currencies through direct holding of such currencies or holding of non-U.S. dollar denominated securities.</li></ul><ul type = "square"><li><b>Eurozone Related Risk. </b>A 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. </li></ul><ul type = "square"><li><b>Risk of Investing in Emerging Market Countries. </b>Securities issued or traded in emerging markets generally entail greater risks than securities issued or traded in developed markets. Emerging market economies may also experience more severe downturns (with corresponding currency devaluations) than developed economies.</li></ul><ul type = "square"><li><b>Leverage Risk. </b>Leverage risk is created when an investment 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. </li></ul><ul type = "square"><li><b>Risk of Inflation-Indexed Bonds. </b>The value of inflation-indexed bonds is subject to the effects of changes in market interest rates caused by factors other than inflation ("real interest rates"). If interest rates rise due to reasons other than inflation, the Fund's investment in these securities may not be protected to the extent that the increase is not reflected in the security's inflation measure. </li></ul><ul type = "square"><li><b>Risk of Investing in Derivative Contracts and Hybrid Instruments.</b> Derivative contracts and hybrid instruments involve risks different from, or possibly greater than, risks associated with investing directly in securities and other traditional investments. Specific risk issues related to the use of such contracts and instruments include valuation and tax issues, increased potential for losses and/or costs to the Fund, and a potential reduction in gains to the Fund. Each of these issues is described in greater detail in this Prospectus. Derivative contracts and hybrid instruments may also involve other risks described in this Prospectus or the Fund's Statement of Additional Information (SAI), such as interest rate, credit, currency, liquidity and leverage risks. </li></ul><ul type = "square"><li><b>Credit Enhancement Risk. </b>The securities in which the Fund invests may be subject to credit enhancement (for example, guarantees, letters of credit or bond insurance). 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. 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. </li></ul><ul type = "square"><li><b>Risk of Loss after Redemption. </b>The 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"). </li></ul><ul type = "square"><li><b>Technology Risk. </b>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. </li></ul>The Shares offered by this Prospectus are not deposits or obligations of any bank, are not endorsed or guaranteed by any bank and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. <b>Performance: Bar Chart and Table<b><br/><br/><b>Risk/Return Bar Chart</b> The bar chart and performance table below reflect historical performance data for the Fund and are intended to help you analyze the Fund's investment risks in light of its historical returns. The bar chart shows the variability of the Fund's IS class total returns on a calendar year-by-year basis. The Average Annual Total Return Table shows returns for each class averaged over the stated periods, and includes comparative performance information. The Fund's performance will fluctuate, and past performance (before and after taxes) is not necessarily an indication of future results. Updated performance information for the Fund is available under the "Products" section at FederatedInvestors.com or by calling 1-800-341-7400. 0.0644 0.0094 0.0075 0.0075 0.0075 0.0075 0.0075 0 0.0075 0.0075 0.0005 0 0.0055 0.0055 0.0055 0.0055 0.003 0.0001 0.0001 0.0001 0.0001 0.0001 0.0131 0.0206 0.0206 0.0136 0.0106 -0.0041 -0.0041 -0.0041 -0.0046 -0.0041 0.009 0.0165 0.0165 0.009 <b>RISK/RETURN SUMMARY: FEES AND EXPENSES</b> This table describes the fees and expenses that you may pay if you buy and hold Class A Shares (A) and Institutional Shares (IS) of the Fund. You may qualify for certain sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in certain classes of Federated Funds. More information about these and other discounts is available from your financial professional and in the "What Do Shares Cost?" section of the Prospectus on page 19. -0.0392 -0.0029 0.0094 0.0011 0.0062 -0.0173 0.0316 0.0411 0.0296 0.0011 0.0065 <b>Example</b> This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.<br /><br />The Example assumes that you invest $10,000 for the time periods indicated and then redeem all of your Shares at the end of those periods. Expenses assuming no redemption are also shown. The Example also assumes that your investment has a 5% return each year and that operating expenses are as shown in the table above and remain the same. Although your actual costs and returns may be higher or lower, based on these assumptions your costs would be: 2011-07-01 2010-12-13 2010-12-13 2010-12-13 676 759 309 337 108 942 1046 646 626 337 1229 1308 1108 837 585 2042 2197 2390 1719 1294 676 209 209 237 108 942 646 646 526 337 1229 1108 1108 837 585 2042 2197 2390 1719 1294 <b>Portfolio Turnover </b> The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund Shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 37% of the average value of its portfolio. <b>RISK/RETURN SUMMARY: INVESTMENTS, RISKS and PERFORMANCE </b><br /><br /><b>What are the Fund's Main Investment Strategies? </b> The Fund pursues its investment objective by investing in both equity and fixed-income securities that have high relative income potential. The fund's investment adviser's ("Adviser") process for selecting equity investments attempts to identify mature, mid- to large-cap value companies and securities with high dividend yields that are likely to maintain and increase their dividends. The Adviser selects fixed-income investments that offer high current yields. The Adviser expects that these fixed-income investments will primarily be investment-grade debt issues, domestic noninvestment-grade debt securities (also known as "junk bonds" or "high-yield bonds") and foreign investment-grade and noninvestment-grade fixed-income securities, including emerging market debt securities. The Adviser continuously analyzes a variety of economic and market indicators, considers the expected performance and risks unique to these categories of fixed-income investments, and attempts to strategically allocate among the categories to achieve strong income across changing business cycles. The Adviser does not target an average maturity or duration for the Fund's portfolio and may invest in bonds of any maturity range. The Fund may buy or sell foreign currencies in lieu of or in addition to non-dollar denominated fixed-income securities in order to increase or decrease its exposure to foreign interest rate and/or currency markets.<br /><br />Certain of the government securities in which the Fund invests are not backed by the full faith and credit of the U.S. government, such as those issued by the Federal Home Loan Mortgage Corporation ("Freddie Mac"), the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Bank System. These entities are, however, supported through federal subsidies, loans or other benefits. The Fund may also invest in government securities that are supported by the full faith and credit of the U.S. government, such as those issued by the Government National Mortgage Association ("Ginnie Mae"). Finally, the Fund may invest in a few government securities that have no explicit financial support, but which are regarded as having implied support because the federal government sponsors their activities.<br /><br />The Fund may use derivative contracts and/or hybrid instruments to implement elements of its investment strategy as more fully described in the Fund's Prospectus. <b>What are the Main Risks of Investing in the Fund? </b> You may qualify for certain sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in certain classes of Federated Funds. 100000 All mutual funds take investment risks. Therefore, it is possible to lose money by investing in the Fund. All mutual funds take investment risks. Therefore, it is possible to lose money by investing in the Fund. The primary factors that may reduce the Fund's returns include: <ul type="square"><li><b>Stock Market Risk.</b> The value of equity securities in the Fund's portfolio will fluctuate and, as a result, the Fund's Share price may decline suddenly or over a sustained period of time. </li></ul><ul type="square"><li><b>Risk Related to Investing for Value.</b> The Fund generally uses a "value" style of investing, so that the Fund's Share price may lag that of other funds using a different investment style. </li></ul><ul type="square"><li><b>Counterparty Credit Risk.</b> Credit 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 the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategy. </li></ul><ul type="square"><li><b>Liquidity Risk.</b> Trading opportunities are more limited for fixed-income securities that have not received any credit ratings, have received ratings below investment grade or are not widely held. Trading opportunities are more limited for CMOs that have complex terms or that 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. </li></ul><ul type="square"><li><b>Risk Associated with Noninvestment-Grade Securities.</b> Securities rated below investment grade may be subject to greater interest rate, credit and liquidity risks than investment-grade securities. </li></ul><ul type="square"><li><b>Risk Related to the Economy.</b> Lower grade bond returns are sensitive to changes in the economy. </li></ul><ul type="square"><li><b>Interest Rate Risk.</b> Prices of fixed-income securities generally fall when interest rates rise. </li></ul><ul type="square"><li><b>Prepayment Risk.</b> When homeowners prepay their mortgages in response to lower interest rates, the Fund will be required to reinvest the proceeds at the lower interest rates available. Also, when interest rates fall, the price of mortgage-backed securities may not rise to as great an extent as that of other fixed-income securities. </li></ul><ul type="square"><li><b>Risk of Foreign Investing.</b> Because the Fund may invest in securities issued by foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than could otherwise be the case. </li></ul><ul type="square"><li><b>Risk of Investing in ADRs and Domestically Traded Securities of Foreign Issuers.</b> Because the Fund may invest in American Depositary Receipts (ADRs) and other domestically traded securities of foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than would otherwise be the case. </li></ul><ul type="square"><li><b>Risk of Investing in Emerging Market Countries.</b> Securities issued or traded in emerging markets generally entail greater risks than securities issued or traded in developed markets. 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 economics. </li></ul><ul type="square"><li><b>Currency Risk.</b> Exchange rates for currencies fluctuate daily. Accordingly, the Fund may experience increased volatility with respect to the value of its Shares and its returns as a result of its exposure to foreign currencies through direct holding of such currencies or holding of non-U.S. dollar denominated securities. </li></ul><ul type="square"><li><b>Eurozone Related Risk.</b> A 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. </li></ul><ul type="square"><li><b>Risk of Investing in Derivative Contracts and Hybrid Instruments.</b> Derivative contracts and hybrid instruments involve risks different from, or possibly greater than, risks associated with investing directly in securities and other traditional investments. Specific risk issues related to the use of such contracts and instruments include valuation and tax issues, increased potential for losses and/or costs to the Fund, and a potential reduction in gains to the Fund. Each of these issues is described in greater detail in this Prospectus. Derivative contracts and hybrid instruments may also involve other risks described in this Prospectus or the Fund's Statement of Additional Information (SAI), such as stock market, interest rate, credit, currency, liquidity and leverage risks. </li></ul><ul type="square"><li><b>Exchange-Traded Funds Risk.</b> An investment in an exchange-traded fund (ETF) generally presents the same primary risks as an investment in a conventional fund (i.e., one that is not exchanged traded) that has the same investment objectives, strategies and policies. </li></ul><ul type="square"><li><b>Sector Risk.</b> Sector risks is the possibility that a certain sector may underperform other sectors or the market as a whole. </li></ul><ul type="square"><li><b>Leverage Risk.</b> 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. </li></ul><ul type="square"><li><b>Custodial Services and Related Investment Costs.</b> Custodial services and other costs relating to investment in international securities markets generally are more expensive than in the United States. Such markets have settlement and clearance procedures that differ from those in the United States. In certain markets there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct such transactions. The inability of the Fund to make intended securities purchases due to settlement problems could cause the Fund to miss attractive investment opportunities. Inability to dispose of a portfolio security caused by settlement problems could result in losses to the Fund due to a subsequent decline in value of the portfolio security. In addition, security settlement and clearance procedures in some emerging countries may not fully protect the Fund against loss of its assets. </li></ul><ul type="square"><li><b>Technology Risk.</b> Proprietary and third-party data and systems are utilized to support decision making for the Fund. &nbsp;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. </li></ul>The Shares offered by this Prospectus are not deposits or obligations of any bank, are not endorsed or guaranteed by any bank and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. The Shares offered by this Prospectus are not deposits or obligations of any bank, are not endorsed or guaranteed by any bank and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. The bar chart shows the variability of the Fund's IS class total returns on a calendar year-by-year basis. 1-800-341-7400 FederatedInvestors.com The Fund's performance will fluctuate, and past performance (before and after taxes) is not necessarily an indication of future results. The stated returns assume the highest historical <b>federal</b> income and capital gains tax rates. These after-tax returns do <b>not </b>reflect the effect of any applicable <b>state</b> and <b>local</b> taxes. After-tax returns are not relevant to investors holding shares through a 401(k) plan, an Individual Retirement Plan or other tax-advantaged investment plan. In addition to Return Before Taxes, Return After Taxes is shown for the IS class to illustrate the effect of federal taxes on Fund returns. <b>Performance: Bar Chart and Table </b><br /><br /><b>Risk/Return Bar Chart</b> The Fund is the successor to Federated Capital Income Fund, Inc. (the "Predecessor Fund") pursuant to a reorganization that became effective on May 27, 2003. Prior to that date, the Fund had no investment operations. Accordingly, the performance information and financial information provided in this Prospectus for the periods prior to the reorganization is historical information of the Predecessor Fund. The Predecessor Fund was managed by Passport Research Ltd., using the same personnel as the Fund's Adviser and had the same investment objectives, strategies and policies as the Fund. The performance information shown below will help you analyze the Fund's investment risks in light of its historical returns.<br /><br />The bar chart and performance table below reflect historical performance data for the Fund and are intended to help you analyze the Fund's investment risks in light of its historical returns. The bar chart shows the variability of the Fund's A class total returns on a calendar year-by-year basis. The Average Annual Total Return Table shows returns for each class averaged over the stated periods, and includes comparative performance information. The Fund's performance will fluctuate, and past performance (before and after taxes) is not necessarily an indication of future results. Updated performance information for the Fund is available under the "Products" section at FederatedInvestors.com or by calling 1-800-341-7400. <b>Average Annual Total Return Table</b> In addition to Return Before Taxes, Return After Taxes is shown for the IS class to illustrate the effect of federal taxes on Fund returns. After-tax returns are shown only for IS class and after-tax returns for the A class may differ for those shown for the IS class. Actual after-tax returns depend on each investor's personal tax situation, and are likely to differ from those shown. After-tax returns are calculated using a standard set of assumptions. The stated returns assume the highest historical <b>federal</b> income and capital gains tax rates. These after-tax returns do <b>not </b>reflect the effect of any applicable <b>state</b> and <b>local</b> taxes. After-tax returns are not relevant to investors holding shares through a 401(k) plan, an Individual Retirement Plan or other tax-advantaged investment plan. <br/><br/>(For the Period Ended December 31, 2012) 0.1989 0.099 0.0604 0.1521 0.0338 -0.217 0.281 0.1132 0.0467 0.1144 Federated Capital Income Fund - A Class highest quarterly return 2003-06-30 0.1245 lowest quarterly return 2008-12-31 -0.1351 The total returns shown in the bar chart do not reflect the payment of any sales charges or recurring shareholder account fees. If these charges or fees had been included, the returns shown would have been lower.<br /><br />Within the periods shown in the bar chart, the Fund's A class highest quarterly return was 12.45% (quarter ended June 30, 2003). Its lowest quarterly return was (13.51)% (quarter ended December 31, 2008). <b>Average Annual Total Return Table</b> The Fund's IS class commenced operations on March 30, 2012. For the period prior to the commencement of operations of the IS class, the performance information shown below is for the A class. The performance of the A class has not been adjusted to reflect the expenses applicable to the IS class since the IS class has a lower expense ratio than the expense ratio of the A class. The performance of the A class has been adjusted to reflect the absence of sales charges applicable to A class and to remove any voluntary waiver of Fund expenses related to the A class that may have occurred during the period prior to the commencement of operations of the IS class.<br /><br />In addition to Return Before Taxes, Return After Taxes is shown for the Fund's A class to illustrate the effect of federal taxes on Fund returns. After-tax returns are shown only for A class and after-tax returns for B, C, F and IS classes will differ from those shown for A class. Actual after-tax returns depend on each investor's personal tax situation, and are likely to differ from those shown. After-tax returns are calculated using a standard set of assumptions. The stated returns assume the highest historical <b>federal</b> income and capital gains tax rates. These after-tax returns do <b>not</b> reflect the effect of any applicable <b>state</b> and <b>local</b> taxes. After-tax returns are not relevant to investors holding Shares through a 401(k) plan, an Individual Retirement Account or other tax-advantaged investment plan.<br /><br />(For the Period Ended December 31, 2012) 0.0528 0.0318 0.0337 0.0494 0.0961 0.0917 0.1111 0.16 0.116 0.1138 0.0424 0.0263 0.0272 0.0429 0.0464 0.0521 0.0536 0.0166 0.0627 0.0261 0.0743 0.0587 0.0561 0.0739 0.0724 0.0793 0.071 0.0801 0.0616 0.063 Within the period shown in the bar chart, the Fund's IS class highest quarterly return was 3.97% (quarter ended March 31, 2011). Its lowest quarterly return was (1.47)% (quarter ended June 30, 2012). highest quarterly return 2011-03-31 0.0397 lowest quarterly return -0.0147 2012-06-30 February 1, 2014 up to but not including the later of (the "Termination Date"): (a) February 1, 2014; or (b) the date of the Fund's next effective Prospectus. 1.13 Federated Unconstrained Bond Fund - IS Class February 1, 2014 up to but not including the later of (the "Termination Date"): (a) February 1, 2014; or (b) the date of the Fund's next effective Prospectus. 0.37 All mutual funds take investment risks. Therefore, it is possible to lose money by investing in the Fund. The Shares offered by this Prospectus are not deposits or obligations of any bank, are not endorsed or guaranteed by any bank and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. The bar chart shows the variability of the Fund's A class total returns on a calendar year-by-year basis. The Fund's IS class commenced operations on March 30, 2012. 1-800-341-7400 FederatedInvestors.com The Fund's performance will fluctuate, and past performance (before and after taxes) is not necessarily an indication of future results. The total returns shown in the bar chart do not reflect the payment of any sales charges or recurring shareholder account fees. The stated returns assume the highest historical <b>federal</b> income and capital gains tax rates. These after-tax returns do <b>not</b> reflect the effect of any applicable <b>state</b> and <b>local</b> taxes. After-tax returns are not relevant to investors holding Shares through a 401(k) plan, an Individual Retirement Account or other tax-advantaged investment plan. After-tax returns are shown only for A class and after-tax returns for B, C, F and IS classes will differ from those shown for A class. <div style="display:none">~ http://www.FederatedInvestors.com/role/ScheduleExpenseExampleNoRedemptionTransposedFederatedCapitalIncomeFund column period compact * ~</div> The Adviser and its affiliates have voluntarily agreed to waive their fees and/or reimburse expenses so that the total annual fund operating expenses (excluding Acquired Fund Fees and Expenses) paid by the Fund's A and IS classes (after the voluntary waivers and/or reimbursements) will not exceed 1.18% and 0.93% (the "Fee Limit"), respectively, up to but not including the later of (the "Termination Date"): (a) February 1, 2014; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. The Adviser and its affiliates have voluntarily agreed to waive their fees and/or reimburse expenses so that total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, Expenses Allocated from Affiliated Partnerships and Tax Reclaim Recovery Expenses) paid by the Fund's A, B, C, F and IS classes (after the voluntary waivers and/or reimbursements) will not exceed 0.89%, 1.64%, 1.64%, 0.89% and 0.64% (the "Fee Limit"), respectively, up to but not including the later of (the "Termination Date"): (a) February 1, 2014; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index is a subset of The Bank of America Merrill Lynch 0-1 Year U.S. Treasury Index including all securities with a remaining term to final maturity less than 3 months. The Standard and Poor's 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Barclays Capital changed the name of the BEMB, BHY2%ICI and the BMB indexes from "Barclays Capital Emerging Market Bond Index" to "Barclays Emerging Market Bond Index," "Barclays Capital High Yield 2% Issuer Capped Index" to "Barclays High Yield 2% Issuer Capped Index" and "Barclays Capital Mortgage-Backed Securities Index" to "Barclays Mortgage-Backed Securities Index ." Blended Index is a blend of indexes comprised of 40% Dow Jones Select Dividend Index/20% Barclays Emerging Market Bond Index/20% Barclays High Yield 2% Issuer Capped Index /20% Barclays Capital Mortgage-Backed Securities Index. Lipper figures represent the average of the total returns reported by all the mutual funds designated by Lipper, Inc. as falling into the respective category indicated. They do not reflect sales charges. EX-101.SCH 3 fist5-20130125.xsd XBRL SCHEMA FILE 000000 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 000011 - Document - Risk/Return Summary {Unlabeled} - Federated Capital Income Fund link:presentationLink link:calculationLink link:definitionLink 000012 - Schedule - Shareholder Fees {- Federated Capital Income Fund} link:presentationLink link:calculationLink link:definitionLink 000013 - Schedule - Annual Fund Operating Expenses {- Federated Capital Income Fund} link:presentationLink link:calculationLink link:definitionLink 000014 - Schedule - Expense Example {Transposed} {- Federated Capital Income Fund} link:presentationLink link:calculationLink link:definitionLink 000015 - Schedule - Expense Example, No Redemption {Transposed} {- Federated Capital Income Fund} link:presentationLink link:calculationLink link:definitionLink 000016 - Schedule - Annual Total Returns - Federated Capital Income Fund [BarChart] link:presentationLink link:calculationLink link:definitionLink 000017 - Schedule - Average Annual Total Returns {Transposed} {- Federated Capital Income Fund} link:presentationLink link:calculationLink link:definitionLink 000018 - Document - Risk/Return Detail {Unlabeled} - Federated Capital Income Fund link:presentationLink link:calculationLink link:definitionLink 000019 - Disclosure - Risk/Return Detail Data {Elements} - Federated Capital Income Fund link:presentationLink link:calculationLink link:definitionLink 000021 - Document - Risk/Return Summary {Unlabeled} - Federated Unconstrained Bond Fund link:presentationLink link:calculationLink link:definitionLink 000022 - Schedule - Shareholder Fees {- Federated Unconstrained Bond Fund} link:presentationLink link:calculationLink link:definitionLink 000023 - Schedule - Annual Fund Operating Expenses {- Federated Unconstrained Bond Fund} link:presentationLink link:calculationLink link:definitionLink 000024 - Schedule - Expense Example {Transposed} {- Federated Unconstrained Bond Fund} link:presentationLink link:calculationLink link:definitionLink 000025 - Schedule - Expense Example, No Redemption {Transposed} {- Federated Unconstrained Bond Fund} link:presentationLink link:calculationLink link:definitionLink 000026 - Schedule - Annual Total Returns - Federated Unconstrained Bond Fund [BarChart] link:presentationLink link:calculationLink link:definitionLink 000027 - Schedule - Average Annual Total Returns {Transposed} {- Federated Unconstrained Bond Fund} link:presentationLink link:calculationLink link:definitionLink 000028 - Document - Risk/Return Detail {Unlabeled} - Federated Unconstrained Bond Fund link:presentationLink link:calculationLink link:definitionLink 000029 - Disclosure - Risk/Return Detail Data {Elements} - Federated Unconstrained Bond Fund link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 4 fist5-20130125_cal.xml XBRL CALCULATION FILE EX-101.DEF 5 fist5-20130125_def.xml XBRL DEFINITION FILE EX-101.LAB 6 fist5-20130125_lab.xml XBRL LABEL FILE EX-101.PRE 7 fist5-20130125_pre.xml XBRL PRESENTATION FILE