Federated MDT
Balanced Fund
A Portfolio of Federated MDT Series
CLASS A SHARES (TICKER QABGX)
CLASS C SHARES (TICKER QCBGX)
CLASS R SHARES (TICKER QKBGX)
INSTITUTIONAL SHARES (TICKER QIBGX)
SUPPLEMENT TO STATEMENT OF
ADDITIONAL INFORMATION DATED september 30, 2013
Under the heading
entitled “
Portfolio Manager Information
,” please delete the information related to Christopher J. Smith and replace it with the following:
Chengjun (Chris) Wu, Portfolio
Manager
Types of Accounts Managed
by Chengjun (Chris) Wu
|
Total Number of Additional Accounts
Managed/Total Assets*
|
|
Registered Investment Companies
|
0/$0
|
|
Other Pooled Investment Vehicles
|
0/$0
|
|
Other Accounts
|
6/$674.5 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: $1-$10,000.
Chengjun (Chris) Wu 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, to a lesser extent, Financial Success, 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 vs. the Fund's benchmark (Barclays Universal) and vs. the Fund's designated peer group of comparable accounts. Performance periods are
adjusted if a portfolio manager has been managing an account for less than five years; accounts with less than one year of performance history under a portfolio manager may be excluded. As noted above, Mr. Wu is also
the portfolio manager for other accounts in addition to the Fund. Such other accounts may have different benchmarks and performance measures. For purposes of calculating the annual incentive amount, each fund or
account managed by the portfolio manager is categorized into one of two IPP groups. Within each performance measurement period and IPP group, IPP is calculated on the basis of an assigned weighting to each account or
fund managed by the portfolio manager and included in the IPP groups. The weighting assigned to the Fund is less than or equal to the weighting assigned to other accounts or funds used to determine IPP. In addition,
Mr. Wu 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 funds. A portion of
the IPP score is based on Federated's senior management's assessment of team contributions. A portion of the bonus tied to the IPP score maybe adjusted based on management's assessment of overall contributions to Fund
performance and any other factors as deemed relevant.
The Financial Success
category is designed to tie the portfolio manager's bonus, in part, to Federated's overall financial results. Funding for the Financial Success category may be determined on a product or asset class basis, as well as
on corporate financial results. Senior Management determines individual Financial Success bonuses on a discretionary basis, considering overall contributions and any other factors deemed relevant.
In addition, Mr. Wu was
awarded a grant of restricted Federated stock. Awards of restricted stock are discretionary and are made in variable amounts based on the subjective judgment of Federated's senior management.
April 8, 2014
Federated MDT Balanced 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
Q452110 (4/14)