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Federated Investors Inc. announces first phase of adjustments to money
market fund lineup

No fees and/or gates on government money market funds

Institutional and retail money market fund plans move forward

Certain funds to be converted to 60-day maximum maturity money market funds
(PITTSBURGH, Pa., Feb. 19, 2015) — Federated Investors, Inc. (NYSE: FII), one of the nation’s largest investment
managers, today announced its preliminary plan to restructure its line of money market funds to meet the needs
of its clients and to comply with regulations announced by the U.S. Securities and Exchange Commission (SEC) in
July 2014. The regulations will be implemented in phases over the next 20 months and the resulting changes in
Federated’s money market fund lineup will take place over the same time frame. Federated will work closely
with its clients to ensure their liquidity needs are met today and in the future, as the changes outlined below take
effect no later than October 2016.
Federated has spent considerable time discussing product changes with clients and has begun taking steps to
adjust its product line to address the needs of a broad array of customers. Federated anticipates that these and
other changes will offer investors a full menu of product choices for liquidity management, including money
market mutual funds and other options.
Federated will continue to offer Treasury and government money market funds. The company will also
designate existing prime and municipal money market funds as either institutional or retail funds.
In the retail money market fund category, the company plans to offer the following product types:

prime money market funds
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national municipal money market funds
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state-specific municipal money market funds

variable annuity money market fund
In the institutional money market fund category, the company plans to offer the following product types:

prime money market funds

national municipal money market funds
Specifically with institutional prime money market funds, Federated anticipates converting certain existing funds
to 60-day maximum maturity funds while other existing funds will remain 397-day maximum maturity funds.
Decisions on categories for many products will be announced over the next several months with the end result
MEDIA:
Meghan McAndrew 412-288-8103
MEDIA:
J. T. Tuskan 412-288-8079
ANALYSTS:
Ray Hanley 412-288-1920
Federated announces future adjustment to money market products
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being a continuation of money market fund choices that enables clients to do business with Federated in the
manner in which they have grown accustomed.
“Federated has been a leading provider of liquidity management services for four decades, and we will continue
to offer products suitable for all of our clients,” said J. Christopher Donahue, president and chief executive officer.
“Our clients have requested that we begin to share information on our product strategy for October 2016
and beyond, and this announcement will help clients move ahead with their liquidity planning solutions while
laying the foundation for Federated to continue providing superior investment management and client service.”
Many of the proposed changes will require approval from the funds’ board of trustees and, in certain cases,
shareholders. Accordingly, Federated will not begin to implement changes to the investment strategies or
shareholder qualifications for its money market funds or solicit proxies from fund shareholders until these
changes have received the necessary approvals and appropriate disclosures have been included in the funds’
registration statements. In addition, further product changes may be required if the SEC issues additional
guidance that impacts the funds.
1) Liquidity fees and redemption gates
Federated will not institute liquidity fees or redemption gates on its government and Treasury money market
funds. Government and Treasury money market funds were exempted from new liquidity fees and redemption
gates provisions and will continue to seek a $1.00 net asset value (NAV). However, under the forthcoming rules,
government and Treasury funds could voluntarily adopt gates and/or fees, as long as a fund’s ability to do so is
disclosed to investors.
Per the new SEC rules, government money market funds will be defined as funds that invest at least 99.5% of
total assets in government securities, cash and/or repurchase agreements that are fully collateralized (i.e.,
collateralized by government securities or cash). These requirements closely follow the manner in which
Federated has historically managed and will continue to manage its government and Treasury money market
funds.
The following Federated money market funds will not have liquidity fees and/or redemption gates.
Federated Automated Government Cash Reserves
Federated Liberty U.S. Government Money Market Fund
Federated Government Cash Series
Federated Treasury Cash Series
Federated Government Reserves Fund
Federated Treasury Obligations Fund
Federated Government Obligations Fund
Federated Trust for Treasury Obligations
Federated Government Obligations Tax Managed Fund
Federated U.S. Treasury Cash Reserves
Importantly, prime and municipal money market funds must be able to support liquidity fees and redemption
gates by Oct. 14, 2016. Federated anticipates complying with these new rules on or about that date.
Federated announces future adjustment to money market products
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2) Retail and institutional funds
Over the next several months, Federated plans to announce which prime and municipal money market funds will
be structured as institutional money market funds and which will be structured as retail money market funds to
meet the new rules. Although the SEC compliance date for the separation of institutional and retail investors is
not until Oct. 14, 2016, Federated expects to announce its plans for institutional/retail designation prior to that
date to give clients the opportunity to plan for their liquidity management needs.
Retail money market mutual funds are defined under the 2014 SEC rules as funds that have policies and
procedures reasonably designed to limit all beneficial owners of the fund to natural persons who invest directly
or invest through retail brokerage accounts, personal trust and agency accounts, and a variety of certain
retirement, college and health-care savings accounts and those accounts held through omnibus accounts at
custodians. Federated’s retail money market funds will continue to seek $1.00 NAVs as they have for the past
four decades.
“Federated has a strong reputation for the depth and experience of our cash management investment personnel,”
said Deborah A. Cunningham, chief investment officer for global money markets. “We are keenly focused on the
many details required to meet the SEC guidelines while continuing to manage our portfolios with the highest
standards possible and interacting with our clients to help them meet their liquidity management needs.”
Subject to any required approvals, certain institutional prime and municipal money market funds will limit their
investments to securities maturing in 60 days or less. Other institutional prime and municipal money market
funds will continue to invest in securities with maturities of up to 397 days, the maturity limit under Rule 2a-7.
Currently it is anticipated that institutional prime and municipal funds selected to be 60-day maximum funds will
begin to gradually limit their investments in late 2015 to securities maturing on or before Dec. 14, 2016, which is
60 days post implementation, so that the funds can be restructured appropriately by Oct. 14, 2016. As permitted
under current rules and guidance, each time a 60-day maximum fund calculates its NAV per share, it will use
amortized cost to value its portfolio securities as long as no market quotations are available and each such
security’s amortized cost approximates the security’s fair value.
Beginning on or about Oct. 14, 2016, the 60-day maximum funds will attempt to maintain an NAV of $1.0000 per
share, and, under ordinary circumstances, the funds’ per share price would be expected to experience little or no
fluctuations. However, the funds’ NAV may fluctuate if the amortized cost value of its securities no longer
approximates the market value or if a fund is required to dispose of securities for something other than amortized
cost. Federated believes that the short maturity of the securities held by the funds should help to limit the
instances when these events may cause a fund’s $1.0000 NAV per share to change.
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3) Floating net asset value money market funds
Subject to notification and disclosure, Federated anticipates that on or about the compliance date for floating net
asset value (Oct. 14, 2016), Federated will convert at least one of its products to a floating net asset value money
market fund for clients seeking an institutional prime money market fund with potentially higher yields than the
60-day maximum money market funds. More details will be announced during the second quarter of 2015.
4) Shareholder votes to update organizational documents
In order to institute the changes required by the SEC’s 2014 rules, Federated plans to conduct a proxy of Money
Market Obligations Trust, the registrant for the majority of Federated’s money market mutual funds. Among the
changes that shareholders are anticipated to be asked to approve are permitting a fund’s board to impose a
redemption fee for prime and municipal money market funds in accordance with the new SEC regulations and
permitting the calculation of NAVs of an institutional prime and municipal money market fund to be carried out
to the fourth decimal point ($1.0000).
5) Mutual fund mergers
Subject to board approval, and in some cases shareholder approval, Federated plans to merge several of its
money market funds into other money market funds with similar investment objectives and add new share
classes to the surviving funds. These moves will enable the firm to continue offering clients a straightforward,
robust and well-diversified choice of products and the ability for investors to do business with Federated in the
manner and form in which they are accustomed. Funds that are expected to be merged will be announced in the
next several months.
Although Federated’s plan announced today may be adjusted before the compliance dates for the money market
fund reform rule, Federated believes the information presented will help clients move ahead with their liquidity
planning solutions. Federated manages more than $258 billion in money market assets. For additional
information and future updates about Federated’s money market funds, visit FederatedInvestors.com/liquidity.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $362.9 billion
in assets as of Dec. 31, 2014. With 131 funds and a variety of separately managed account options, Federated
provides comprehensive investment management to more than 7,700 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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The foregoing is not a solicitation of any proxy. Shareholders should read the proxy statement, which contains important
information relating to the proposals, when it becomes available.