Federated Enhanced Treasury Income Fund Declares Monthly Distribution; Announces Management Changes

(PITTSBURGH, Pa., 01/14/2014 08:58 AM) — Federated Enhanced Treasury Income Fund (NYSE: FTT) today announced the monthly distribution under its managed distribution plan.  Under the plan, the fund makes monthly cash distributions approximating 4.0% of the fund’s net asset value (NAV) on an annualized basis.  The fund may make distributions in excess of those required under the plan in order to meet its obligations under the Internal Revenue Code. 

Pursuant to the plan, the fund has declared its monthly distribution. The distribution amount is based on the fund’s NAV of $14.77 on Dec. 31, 2013. 

Record Date:  Jan. 24, 2014

Ex-Dividend Date:  Jan. 22, 2014

Payable Date:  Jan. 31, 2014

 Distributions Per Share
 AmountChange From Previous Month
Federated Enhanced Treasury Income Fund $ 0.049 $ --

Effective today, J. Andrew Kirschler has been named portfolio manager for Federated Enhanced Treasury Income Fund.  Kirschler replaces Senior Portfolio Manager Donald T. Ellenberger, whose responsibilities at Federated have expanded to include managing multi-sector bond portfolios and, as head of multi-sector strategies, overseeing all portfolios managed in that style.  Kirschler, who has 18 years of investment experience, currently serves as portfolio manager and senior investment analyst at Federated while having previously served as a senior bond trader, where he specialized in trading Treasuries. In addition to the Enhanced Treasury Income Fund, Kirschler will continue to manage Federated U.S. Government Securities Fund: 1-3 Years, Federated U.S. Government Securities Fund: 2-5 Years and Federated Real Return Bond Fund.  Kirschler will continue to be supported by a team of investment analysts.  

Effective March 1, 2014, Dix Hills Partners, LLC will no longer provide services as sub-advisor to Enhanced Treasury Income Fund.  Federated Investment Management Company, the fund’s investment advisor, will make duration calls for the fund beginning on that date based on recommendations provided by its duration committee, which recommends duration targets for nearly all of its fixed-income products.  The duration committee is comprised of portfolio managers and traders from throughout the fixed-income department and is currently headed by R.J. Gallo, senior vice president.

The fund’s distributions under the plan, including the current distribution, may include net investment income, net realized long-term capital gains, net realized short-term capital gains and return of capital.  If a distribution does not consist solely of net investment income, a notice with the estimated components of the distribution will be (i) provided to shareholders at the time of payment; and (ii) posted to the fund’s website at FederatedInvestors.com.  Investors should use the Form 1099-DIV sent after calendar year end, and not the notice, to prepare tax returns.  Investors should not draw any conclusions about the fund’s investment performance from the amount of this distribution or from the terms of the fund’s plan.  The fund employs an integrated U.S. Treasury-based strategy with option writing and a duration management overlay in order to seek to provide investors with the potential for current income and total return. 

Federated Investors, Inc. (NYSE: FII) is one of the largest investment managers in the United States, managing $366.7 billion in assets as of Sept. 30, 2013.  With 135 funds, as well as a variety of separately managed account options, Federated provides comprehensive investment management worldwide to approximately 5,900 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.  For more information, visit FederatedInvestors.com


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