Tools & Resources▼
What is this Expense Summary on my statement all about?
The Expense Summary is a new feature of your account statement. It provides you with detailed information about the costs of owning a Federated Fund investment. In "Your Expenses," it shows the approximate amount of fees and expenses associated with operating the fund over the past quarter in respect of your fund holdings. It also shows a 10-year projection of "Hypothetical Expenses." Please note that expenses vary by fund and share class, and fluctuate over time.
Why was this Expense Summary added to my statement?
This information is intended to better inform shareholders about fund expenses and satisfy new disclosure requirements applicable to Federated and other mutual fund companies. This information may also be useful in comparing the costs of different mutual funds.
Can you explain the information to me? What does it mean?
The information titled "Your Expenses" shows your account's "ending value" for the quarter, as well as the fund's annual expense ratio—which is its total annual operating expense as a percentage of its assets. By applying the expense ratio to your ending value, it provides the approximate amount of expenses incurred over the past quarter in respect of your fund holdings as "Your quarterly fees."
The information titled "Hypothetical Expenses" shows you a hypothetical, or imaginary, $10,000 investment in your fund with a hypothetical return over a ten-year period and the expenses for each year of that period. While the initial investment amount of $10,000 is reduced by the amount of the maximum sales charge (if any) that might be imposed on the purchase of shares, please note that this sales charge may not be applicable to your situation.
Are these fees and expenses something new?
No. They are the same expenses disclosed in the "Fee Table" in your fund's prospectus, which are incurred directly by the fund and indirectly shared by all mutual fund investors to pay for the fund's operation—including professional management, custody, recordkeeping, customer service, and many other services. This is just a new way to show how these expenses relate to an investment in the fund.
Do I have to pay these fees and expenses?
"Your Expenses" are not directly charged to your account. They are simply part of the total fees and expenses that are incurred by the fund. This information is simply designed to illustrate the amount of the fees and expenses associated with your investment in the fund, based on the stated value of your account.
How often will I receive this information?
This information will be part of your quarterly statement, and can be reproduced by using the Fund Expense Calculators on Federated's Web site, FederatedInvestors.com. The illustrations of "Hypothetical Expenses" are also being added to your fund's prospectus, in the section "Appendix A."
Please note: If your Federated fund investment is held in a brokerage or trust account, your statement may not show this new information, as your brokerage or trust firm issues your statement(s).