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							Performance Attribution/Risk Management
Federated Total Return Government Bond Fund vs. Barclays Government Index

                                   Duration        Sector          Yield Curve       Security            TOTAL
POD PERFORMANCE1                    Mgmt          Allocation        Strategy         Selection         PORTFOLIO
Annualized Alpha                     8 bps          10 bps             4 bps           20 bps             42 bps
Tracking Error                      29 bps          23 bps            16 bps           25 bps             51 bps
Information Ratio                     0.3             0.4               0.3              0.8                 0.8
Risk Budget                          15%              35%              10%              25%

                                   Duration         Sector         Yield Curve        Security
CORRELATION MATRIX2                 Mgmt          Allocation        Strategy          Selection
Duration Mgmt                        1.00             0.61             0.05             (0.13)
Sector Allocation                    0.61             1.00             0.31             (0.38)
Yield Curve Strategy                 0.05             0.31             1.00             (0.18)
Security Selection                  (0.13)           (0.38)            (0.18)            1.00

5 Years Ending 9/30/2008




 1.     Federated’s Alpha Pods are teams of experienced investment professionals who seek to provide consistent, controlled, value-
        added management to client portfolios by capitalizing on multiple decision tools. The chart above shows the contribution each
        pod, or team, made to the portfolio’s alpha, tracking error and information ratio. These measures are calculated against the
        benchmark, but are distributed among the Pods to show their influence on each.
 2.     This chart shows the lack of correlation between each team, demonstrating Federated’s diversified approach to fixed income
        investment management.
 Figures shown do not represent the performance of Federated Total Return Government Bond Fund.
    Disclosure
    The Fund is a managed portfolio and holdings are subject to change.
    Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices.
    Barclays Government Index is a market value weighted index of U.S. government and government agency securities (other than mortgage
    securities) with maturities of one year or more. Indexes are unmanaged and cannot be invested in directly.
    Alpha measures a fund’s risk-adjusted performance. It represents the difference between a fund’s actual returns and its expected
    performance, given its level of risk as measured by beta. A positive value for alpha implies that the fund has performed better than would
    have been expected given its volatility. The higher the alpha, the better the fund’s risk-adjusted performance. Morningstar calculates a
    monthly measure of Alpha and then annualizes it to put it in a more useful one-year context.
    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.
    Tracking error is a measure of how closely the manager follows the index, and is measured as the standard deviation of the difference
    between the manager and index returns.
    Information ratio is determined by taking the annualized excess return over a benchmark and dividing it by the standard deviation of
    excess return (tracking error). This measure relates the magnitude and consistency with which an investment outperforms its benchmark.
    The higher the information ratio, the better.
    Correlation matrix is a statistical measure of how two assets move together and is bounced by +1 and -1. A correlation of +1 indicates
    that the assets are perfectly positively correlated and move in tandem-when one goes up, the other also goes up. A correlation of -1
    indicates the two assets are perfectly negatively correlated and move in opposite directions.
    Risk Budget is when a Portfolio is managed under a risk limit that is plus or minus a percentage of the benchmark.

    For more complete information, view the prospectuses available on FederatedInvestors.com or contact your investment professional by
    calling 1-800-341-7400. You should consider the fund's investment objectives, risks, charges, and expenses carefully before you invest.
    Information about these and other important subjects is in the fund's prospectus, which you should read carefully before investing.




Federated Securities Corp., Distributor
38827 (11/08)