Liquidity Management Center Yield Curve

Liquidity Management Center

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Money Market

Government Prime Municipal

Ultrashort (<1 Year)

Short (1-3 Years)

Short - Intermediate (2-5 Years)

Government Money Market Funds

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Prime Money Market Funds

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Municipal Money Market Funds

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Ultrashort Bond Funds (<1 Year Duration)

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Ultrashorts are conservative investments that offer the potential for low share price fluctuation. In exchange for offering a potential yield advantage, ultrashort funds typically exhibit more volatility than money market funds. Compared to longer-duration bond funds, ultrashorts generally pose less interest rate risk because they are less sensitive to interest rate changes.

Short-Term Bond Funds (1-3 Year Duration)

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Short-term bond funds are relatively conservative in nature and seek a yield advantage over both ultrashort and money market funds. This potential yield advantage is accompanied by a higher level of possible volatility and more interest rate sensitivity.

Short-Intermediate Bond Funds (2-5 Year Duration)

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Short-intermediate bond funds focus on primarily investment-grade, shorter-term securities. While riskier than short-term bond funds, they are designed to have lower interest-rate sensitivity through a lower duration band than intermediate and long-term bond funds while still pursuing an attractive yield.

Government Money Market Funds

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Investors with a low risk tolerance for their short-term goals may want to consider government money market funds. These funds invest exclusively in high-quality, short-term securities issued by the U.S. government or by U.S. government agencies and instrumentalities. When the new SEC rules for money funds are implemented in the fall of 2016, government money market fund shares will maintain a stable $1.00 net asset value and will be permissible investments for both institutional and retail investors.

Prime Money Market Funds

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Prime money market funds offer the potential for a higher yield than money market fund portfolios limited to Treasury or government fixed-income securities. They invest in a wide range of securities, including corporate debt obligations, U.S. Government securities, bank securities, certificates of deposit and repurchase agreements. They are generally considered to be low-risk investments although they do not carry the same high level of credit safety as government funds.

Municipal Money Market Funds

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Especially suitable for investors in higher income-tax brackets, municipal money market funds seek interest income exempt from federal income tax as is consistent with liquidity and stability of principal. Investors who own municipal money market funds issued in their primary state of residence may also be exempt from state and local taxes. (Income may be subject to the federal alternative minimum tax and state and local taxes).

Fundamental Strength

Managing cash at the short end of the yield curve is more than a business line; it is a fundamental strength of our business. At Federated, we’ve been in that business for more than four decades, developing numerous options for managing liquidity. Explore our array of money market funds and short-duration options along the curve, or learn more about separate accounts for institutional clients.

Money Market Funds

Few money managers can match Federated's combination of asset size, breadth of experience and depth of staff. We offer one of the largest product menus among money fund managers and our targeted investment options are among the most innovative in the industry. With billions in money market assets under management, Federated brings key advantages in pricing and market access to our clients.

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Fixed Income Funds

These funds provide an opportunity to expand your portfolio's yield potential. While not designed to be a substitute for money market funds, low duration funds have the potential to deliver greater income than money funds and cash accounts because the short-term bonds and other debt instruments they invest in typically provide more competitive yields.

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Ultrashort Bond Funds (<1 Year Duration)

These conservative investments offer the potential for low share price fluctuation.

Short-Term Bond Funds (1-3 Year Duration)

These funds are relatively conservative in nature and seek a yield advantage over both ultrashort and money market funds.

Short-Intermediate Bond Funds (2-5 Year Duration)

These funds focus on primarily investment-grade, shorter-term securities.

Select an Offering below:

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Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us or view the prospectus provided on this website. Please carefully read the summary prospectus or prospectus before investing.

An investment in money market funds is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds.

Yield Curve: Graph showing the comparative yields of securities in a particular class according to maturity. Securities on the long end of the yield curve have longer maturities.

Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.

Ultrashort Bond Funds are not "money market" mutual funds. A money market mutual fund attempts to maintain a stable net asset value through compliance with relevant Securities and Exchange Commission (SEC) rules. These funds are not governed by those rules, and their shares will fluctuate in value.

Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.

Separately managed accounts are available through Federated Investment Counseling, a registered investment adviser.

For more information on money market fund ratings click on "View Details and Share Classes" link for each fund.

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